Trade promotion spending is one of the largest expenses on a P&L and can be up to 25% of consumer packaged goods (CPG) companies’ sales. The most widely used way to analyze trade spending in the industry is to use the trade promotion measures provided by syndicated data providers. But, trade promotion spending continues to become less effective at driving incremental sales, even as spending levels continue to increase. Fundamentally, something is wrong with this picture.
TABS Analytics recently hosted its Third Annual Beauty Study Webinar. In our first infographic from the study, we outline a few overall trends including:
Walmart reasserts its presence in Beauty; YouTube, Beauty Blogs, Facebook and Instagram are top influencers
Shelton, CT – November 16, 2016 – Millennial and Hispanic women are the heaviest buyers of cosmetics and skincare products in this $25 billion dollar market, TABS Analytics reported today in its Third Annual Beauty Study. Millennial women (ages 18-34) accounted for about 33 percent of the user base for cosmetics and skincare and almost 50 percent of heavy buyers of both categories (defined by the number product types of each category purchased). Over the last three years, there has been a sharp rise in the amount of cosmetics purchased by Hispanic women and they now account for 15 percent of all category buyers, 24 percent of all heavy buyers of cosmetics, and 20 percent of heavy skincare buyers. The skew in purchasing toward high income purchasers continued, but the study showed a dip in purchasing after the $99,000 per year in earnings mark.
Dr. Kurt Jetta, TABS Analytics' CEO, was recently interviewed by Tim Simmons of PLMA Live to discuss the TABS 2016 Food and Beverage Study findings on online grocery.
While there is no disagreement between the TABS study and industry estimates pointing to online grocery's current share of 1.5 to 2.0 percent, the contention lies with the future growth of the industry. Dr. Jetta does not expect the exponential growth that others in the industry are predicting for the coming years. He goes one step further and declares that online grocery is failing, as things stand currently.
So it appears that TABS is five years late in noting that online grocery is failing.
About a month ago, we made that declaration during our Food and Beverage Study webinar. That statement has been met with much resistance throughout the industry.
But it’s something that’s been said since at least 2011, when Forbes/Investopedia ran this article citing 10 reasons why online grocery is failing.
Shelton, CT – October 20, 2016 – TABS Analytics, a technology-enabled analytics firm serving the consumer products and retail industry, announced today it is now a member of the Nielsen Connected Partner Program.
The Nielsen Connected Partner Program is an industry first solution for companies servicing the CPG and retail industry. This Connected Partner Program enables partner companies and Nielsen clients to find each other and collaborate in an open ecosystem, freeing them from common barriers to connecting applications and data sets at scale. Nielsen’s CPG data is the DNA of this program and is the most robust retail and shopper information available in the world. Through a mutual data source, the Nielsen Connected Partner Program ultimately will enable Nielsen clients and partners to easily bridge their insights and harness the data necessary to net mutually beneficial results.
In our second infographic from the 2016 TABS Analytics Food & Beverage Study, we wanted to call out some "old-school" ways that still deliver results for food and beverage consumables categories. Key findings are highlighted below, including:
Some things indeed are "old" because they stand the test of time and still work.
Yesterday, noted CPG Industry blogger, Kevin Coupe of Morning News Beat picked up the TABS Analytics Food and Beverage Study webinar and provided some commentary. We’re grateful for Mr. Coupe’s contributions to CPG, and are happy that he was willing to engage with the TABS Analytics findings.
Mr. Coupe disagreed with the TABS analysis, presented by TABS CEO and founder Dr. Kurt Jetta, that online grocery is underperforming. “I think it is absurd to suggest that there is no path to success for e-grocery and that it is a failing concept,” Mr. Coupe said.