Product / Range Rationalisation
Sell fewer, more sustainable products, better and more profitably
WHAT
Too much choice can overwhelm customers, impacting their experience and willingness to pay. A growing number of consumers classify themselves as eco-conscious, but are underserved by retailers existing ranges. Too many product lines can also decrease supply chain efficiency and therefore impact sustainability.
These three forces means selling fewer, more eco-friendly products can lead to significant customer and profit gains, whilst helping to transitions products and supply chains towards a more sustainable future.
Product rationalisation means delisting products that no longer serve a purpose and introducing new ones to improve customer experience. It also means simplifying supply chains and supplier portfolios, resulting in efficiency and sustainability gains.
Retailers gain an average 4.4 percentage point margin improvement by meeting growing customer needs for sustainable products, rationalising existing ones, simplifying the supply chain, and leveraging rationalisations during negotiations
BUSINESS BENEFITS
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Improve customer experience and loyalty
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Cost reduction through supply chain efficiencies and negotiation leverage
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Attract new customers by meeting underserved needs
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Unlock macro space
ENVIRONMENTAL BENEFITS
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Replace environmentally damaging products with eco-friendly ones
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Empower customers with eco-friendly shopping choices
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Reduce supply chain impact