Outlets attract Non-Promo
Promotions also attract non-promo shoppers to outlets
Likewise, outlets gain from non-promo sales in other outlets more. Most of the top outlets gaining switching through promotions stole less from promotional sales in other outlets. Even using the FMCG benchmark of 28%, only a few additional outlets skew to stealing from promotions. However, those outlets still mainly gained from non-promo purchasing. Thus, the importance of shopper awareness of promotional activation cannot be emphasized any stronger. But at the same time, outlets like Lazada will require positive comparisons in order to gain promo buyers from other outlets. In other words, it is imperative to launch a more attractive promotion than other outlets when it comes to outlets such as Lazada.
The most prominent promotion gains of the year came from non-promo purchasing as well, particularly from Provisions. Even from 99 Speedmart’s perspective, a promotion in 99 Speedmart gains more from non-promotional purchasing in Provisions and Nirwana than promotions from another rival outlet. Lazada is again the outlier as it gained promotional sales from Shopee, likely from a more attractive activation. So, while the strategy across most outlets is to boost awareness of promotional efforts in our key outlets, the strategy for outlets like Lazada is to win over the promo lovers already buying on promotions in another outlet.
And like manufacturers, there are instances of outlets getting no increment with shoppers buying products in the outlet without promotion to buying products in the same outlet with promotions. Thus, it is important to note that promotions growing does not guarantee incrementality. Manufacturers must be able to craft a win-win scenario wherein the manufacturer can grow through the outlet and the outlet is able to gain from its competitors more than it subsidizes itself.
