SAN FRANCISCO, Oct. 17, 2019 /PRNewswire/ -- Leading U.S. retailers are exhibiting a growing trend of going hyperlocal in their product assortments, finds the latest study from DataWeave, an AI-powered Competitive Intelligence as a Service provider for e-commerce businesses and consumer brands.
DataWeave's hyperlocal index is a direct indicator of how well the retailer caters to the specific demands of local populations, which is determined by capturing and analyzing ZIP-code level assortment data. The current DataWeave study, which is an update over one from six months ago, indicates a leap of 140% in the index, which shows that the level of focus on hyperlocal assortments across leading retailers is rapidly growing.
"e-Commerce retailers are viewing hyperlocal product assortments as a means to address changing consumer preferences, survive relentless competition, and differentiate themselves in the marketplace," says Karthik Bettadapura, Co-founder & CEO at DataWeave. "As consumer expectations on ultra-personalization and choice heighten, it comes as no surprise that localized assortments are increasingly being adopted, driven by regional demand patterns."
This is only one of several other measures that retailers are taking to remain competitive. Other interesting insights from DataWeave's report, which evaluated 400,000 products across 10 leading retailers, covering up to 10 ZIP codes each, include the following:
Private label penetration is on the rise, and is leveraged by a bevy of retailers led by ALDI, Walmart, and H-E-B.
All the retailers favor a value-based private label pricing strategy, with offerings priced 3% (ALDI) to 37% (Target) lower than the average category prices.
The Beauty & Personal Care and Alcohol & Beverages categories are popular across retailers. These categories exhibit high assortment strength as well as brand concentrations.
Nearly 75% of the brands analyzed are present in just one category, despite the trend of affecting diversified product portfolios to manage intense market competition.
"This report reiterates how progress in the CPG space is dictated by the consistent need for differentiation among retailers as competition heats up. As a result, we expect continued growth in localized assortment initiatives as well as higher private label penetration - areas that we will continue to monitor and report on via our series of studies on the U.S. CPG space," says Karthik.
DataWeave is an AI-powered SaaS platform that provides Competitive Intelligence as a Service to e-commerce businesses and consumer brands, enabling them to compete profitably and accelerate revenue. The company's proprietary technology platform helps e-commerce businesses make smarter pricing and merchandising decisions, and consumer brands protect their online brand equity and improve their e-commerce performance.