Fast Five Shorts | Amazon Names Whole Foods CEO Jason Buechel Head Of Worldwide Grocery
In the latest edition of Omni Talk’s Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Mirakl, Simbe, Ocampo Capital and Scratch Event DJs Chris Walton and Anne Mezzenga discuss: Amazon Naming Whole Foods CEO Jason Buechel Head Of Worldwide Grocery
For the full episode head here: https://youtu.be/PmDEXwquuSE
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Transcript
Walmart will now let suppliers test products in its customers homes.
Speaker A:According to Modern Retail, last Wednesday Walmart launched a program in which verified customers can receive products at their homes, test them and provide feedback to suppliers.
Speaker A:The in home user test program is for suppliers that pay to subscribe to its Insights platform, Walmart Luminate, which the retailer recently renamed Scintilla.
Speaker A:In early February, Walmart Luminate researchers will help brands design surveys to collect customer feedback on new or existing products.
Speaker A:Walmart will offer the test to customers from Walmart's Customer Spark community, an invitation only group of Walmart shoppers.
Speaker A: used to conduct surveys since: Speaker A:And this is the put you on the spot question this week I get a break finally this week.
Speaker A:Wow.
Speaker B:All right, all right, let's bring it A and M.
Speaker B:Here it is.
Speaker A:Quote, investing in consumer research and direct usage testing is always a positive, always a positive towards building more consumer friendly products with higher probability of success.
Speaker A:Is there a downside to CPGs doing this through Walmart versus third party research agencies such as increased risk of delisting if consumer feedback is initially poor, End quote.
Speaker A:And what are your thoughts on that question?
Speaker B:You know I think the only downside that I can think of here would be is if the product creators, the CPGs, the same thing we talk about with retail technology companies.
Speaker B:If you're building your product for Walmart, which is hard not to do because it's a massive retailer, you're building it for America.
Speaker A:Yeah.
Speaker A:Yes.
Speaker A:It's basically what you're saying.
Speaker B:If you're not doing that though, with the ability to consider like okay, how do I then make sure that this product works in Target, works in Sprouts, works in all these other retailers.
Speaker B:Like you can't just focus on the Walmart represent or the Walmart feedback that you're getting from these.
Speaker B:But I think you just said it, Chris.
Speaker B:I think that this is good because number one, you have confirmed Walmart shoppers.
Speaker B:This is not people from a focus groups.
Speaker B:I've done plenty of focus groups in my day who say yeah, I shopped at Walmart in the last six months or I think I did or I might or whatever.
Speaker B:I, I think there's still so much ambiguity in the, in, in the consumer focus groups that I think this is somebody you know exactly is a confirmed Walmart shopper will be potentially in a place to buy this product.
Speaker B:And I think Walmart does do a better job of representing the core of the country.
Speaker B:So if you're going to scale this beyond the coast like Walmart's a great representation and the CPGs and Walmart are going to get a ton of data from this.
Speaker B:So I think it's a really good move.
Speaker B:I think it just is important that like, that's the data collection side of things.
Speaker B:I said I still think it's important to have the art side of the merchandising here to really understand, okay, what's the data that we're getting from Walmart, from the majority of the country, and how do we delicately design that product to fit within those other retailers that are going to be in our portfolio.
Speaker B:But you, you're the, the merchant here.
Speaker B:So what, I mean you've done plenty of these tests too.
Speaker B:What do you think?
Speaker A:Yeah, I mean I, I, I, I, I think you're drinking the Kool Aid a little bit on this one.
Speaker A:And I, I kind of tend to side with where I think the A and M, C A M Consumer and retail group was leading us with that question, which is why would, why would the CPG sign up for this?
Speaker A:Like, I, I don't, I don't think if I'm a cpg, I don't think I would and I honestly, I think, you know, for me this, I hate to say it, but this just, and, and fair play to Walmart for doing it and this just feels like a way to squeeze more incremental money out of your vendor community.
Speaker A:Because if, like, if I'm a vendor, it's not hard, I mean it's not hard to find Walmart shoppers.
Speaker A:It's really not through third party research firms, it's not, I mean, maybe, maybe there's occasionally somebody that's lying, but for the most part you can find somebody.
Speaker A:And you know, and so like why, why, and so if that's the case, if I'm a cbg, why do I need Walmart to help me design tests for new products?
Speaker A:And the other part I don't like about this, which, which is different than the reasons that A and M gave for not liking it or potentially not liking it, is I don't want to give, I don't want Walmart to get insight into the data that I'm collecting on what's working and not working with my new product development because then they could go and take that and put that into their own private label development.
Speaker A:Why would I?
Speaker B:But they're going to do that anyway, right?
Speaker B:I mean they're gonna get it, they're.
Speaker A:Not gonna have your research data, they're not gonna have your feedback on your products?
Speaker A:No, they're just gonna know what's selling and what's not at the end of the day off the shelf and that might still spur them but like if you're, if you're doing some new recycled packaging or some new thing, you know, in terms of some, some new like label claim around like the, the Ozempic craze or whatever, they're gonna get insight into that more quickly than they would otherwise and they could put that in their private label development.
Speaker A:So, so maybe I'm, I'm, maybe I'm missing something but I don't know.
Speaker A:The merchant had in me is like good job Walmart.
Speaker A:You can press them into, you know, spending more money with you but at the end of the day if I'm a cpg, I'm like treading really lightly here and I'm putting the minimum expected commitment into this program with Walmart.
Speaker A:That's what I think.
Speaker A:Yeah.
Speaker B:Oh I think there's, I think there's so much more opportunity to like I just as a Walmart plus member.
Speaker B:Like I think there's so many more opportunities to capture like that upper income demographic and I do think, I think that there's more to knowing you have a Walmart shopper, especially in grocery and understanding what their purchasing behaviors are, what else they like, what other flavor profiles they like.
Speaker B:Like I think there's a lot more data exchange that could be happening and you're right, I'm sure there's some hook in there.
Speaker B:Just like with retail media like you have to be part of this program and pay us more money if you're going to be like.
Speaker B:I'm sure there's a lot of nuance.
Speaker A:In there but part of the vendor summit?
Speaker B:Yes.
Speaker B:I don't know.
Speaker B:I think, I think it's worth exploring.
Speaker B:I would like to see, I guess I just, it's something I want to follow and see.
Speaker B:If we start to see this pick up as you know with the rebrand of the name, who knows, maybe it'll take off and what is it resilience or something there salience or something scintilla and.
Speaker A:Chill.
Speaker B:How can I forget that?
Speaker A:Yeah, yeah.
Speaker A:My, my bet.
Speaker A:If I was a betting man I would say, I would say we'll never hear hear about this headline again.
Speaker A:That's what I think.
