The Power of Six
Tuning into the right channels
"The power of six" has emerged as a mantra for both consumers and brands navigating the channel landscape. Our analysis of penetration levels across a broad spectrum of shopping channels, reveals that six channels appear to be the sweet spot for most in the region.
Commanding the highest penetration at 21%, shopping across six distinct channels emerges as the most favoured approach by our chameleon consumers. This six-channel paradigm represents a nexus of variety and manageability that currently resonates with most shoppers. As the channel repertoire expands beyond this number, consumer engagement wanes, underscoring a preference for simplicity over even more options.
Peering into the growth drivers of this trend and mapping them across the course of an average month, we see demands for value, convenience, and personalised experiences supporting the evolving market dynamics. Discounters, with their promise of unbeatable prices, tap into the vein of consumer desire for maximised value, while the allure of online shopping, with its conveniences of same-day delivery and hassle-free returns, cement e-commerce as an integral part of the contemporary consumer lifestyle.
But traditional trade is still "always on" and interacts with bimonthly overlaps between Minimarkets, Super and Discount and with monthly visits overlapping between Hyper and Wholesalers.
As we trace the consumers' steps, we notice a mosaic of store visits. Discount and traditional stores command recurrent patronage, whereas pharmacies punctuate the shopping schedule less frequently. The colours of the chameleon are everywhere. Yet, the plot thickens when we scrutinise their volumes of purchases.
As we saw earlier, the humble minimarket is not so humble in terms of transactional heft. Wholesalers, though frequented less, yield a more substantial haul per visit—a testament to bulk-buying trends.
But there is yet another layer to the choices being made: purpose.
Each channel has a purpose, and consumers change their brand mix depending on the channel and their needs. They are more likely to opt for premium brands in hypermarkets and pharmacies while choosing private labels at discounters. Mainstream brands tend to stand out in the higher-frequency stores of traditional trade and supermarkets.
This behaviour reflects another shift in consumer habits: pack sizes. In tough economic times, one might expect smaller pack sizes to be popular as households manage their daily cash flow. However, the opposite is often true, depending on the category. Consumers are frequently choosing larger pack sizes for staple commodities but opting for smaller packs for more indulgent items like snacks. In other words, the type of product has increasingly become a key factor in determining pack size preferences among our shapeshifting consumers.
Instead, wallets are being managed not through cautious, small purchases, but through strategic bulk acquisitions, maximising value per visit.
Given this shift, it is also important to understand the shopper mission and need states being satisfied by each channel. In essence, shoppers choose channels according to the product they need. For example, food and dairy tend to dominate in supermarkets, hypermarkets, minimarkets, and wholesalers, while homecare is high on the list for shoppers at discounters. Higher-frequency purchases, such as drinks, tend to be more commonly met by traditional trade and bakeries.
For retailers and brands, understanding the power of six is a strategic necessity. This channel constellation represents an interplay of accessibility, variety, and practicality. Success hinges not only on presence but on mastering the nuances of activating a portfolio with maximum reach that ties to the right pricing, packaging, and visibility.
Being available in the channel is a mere starting point. Ensuring that products are priced appropriately, packaged attractively, and visible both in-store and online completes the circuit, electrifying the brand's connection with consumers.
