Alissa Hsu Lynch

A good little read from Kearney Consumer Institute’s Q3 2024 Health & Wellness brief. It seems to break with a lot of conventional thinking on consumer messaging. Essentially, consumers are no longer chasing perfection (if they ever were). Instead, they're leaning into real, practical, and attainable wellness solutions. 1) Simplicity beats sophistication. People want easy, actionable approaches, not complexity. 2) Transparency and authenticity are winning over flashy promises. 3) Emotional well-being is now one of the biggest drivers of purchasing behavior. Bottom line takeaway from the article: The days of selling an unattainable wellness ideal are over.

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Does this ring true for you? Across all generations, more Americans would choose to feel 25% healthier than live 25% longer. We’re in a healthspan revolution propelled by people who are eager to feel better, healthier and more energized as they age. Some fantastic tips from Alexa Mikhail on lengthening your healthspan — so you can live longer in good health and free from disease: - Adopting a “longevity mindset,” which refers to changing the way you view aging. - Routine physical exercise to boost cardiovascular health and protect against heart disease. - Sleeping the recommended 7-9 hours a night. - Feeling connected to family and friends, which protects against loneliness, chronic conditions, and dementia.  More on this here: https://lnkd.in/eXUXaYuF    Would you rather feel 25% healthier or live 25% longer? I’d love to hear your thoughts in the comments below. #HealthSpan #BetterSleepMonth

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Yes, sometimes saying nothing is a strong strategy. According to a 2019 Sprout Social report, 70% of consumers believe it's important for brands to take a public stand on social and political issues. The report highlighted that this practice would become the “new normal,” helping brands build a better image while educating customers about social issues and for years, brands have been making public statements on various important topics. However, Harvard University is now taking a different approach, which I expect many others to follow. Recently, Harvard announced it will remain silent on public matters not directly related to its “core function,” following the controversy sparked by its statements on the Israel-Hamas war. I’m torn on this topic. On one hand, I believe brands should only voice their opinions if they actively support the cause with time and money; otherwise, their statements seem self-serving and opportunistic. On the other hand, influential brands can raise awareness about issues that may lead to positive action. What do you think? Should brands stick to issues related to their work and investments, or should they share their thoughts on broader societal improvements? When have you appreciated a brand adding their voice to an issue? #topvoices #brand #socialchange https://lnkd.in/epEmE2aq

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The Costco Wholesale phenomenon is a masterclass in #retail excellence, blending strategic product placement, bulk-buy bargains, and an engaging treasure-hunt experience to convert first-time shoppers into lifelong members.     By meticulously curating a chaotic yet efficient environment, Costco has achieved what many retailers aspire to – a deeply loyal customer base. And from the depths of the aisles, a key takeaway emerges: retail success lies in creating compelling, value-driven experiences that resonate with #shoppers on a personal level. Read more great insights on Costco’s successful #customer retention model from Phil W.: 

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Calling all HCPs in my network! Your expertise is needed to help define the future direction of a gut health innovation with global impact. Are you a physician, general practitioner, gastroenterologist, dietitian, or in a related field? Then we need your valuable input. Friends of mine are leading a groundbreaking project in gut health, supported by renowned global institutions. They need your input on three potential brand directions to understand which one is the most relevant and relatable for you as an HCP and for your patients/clients. This project is set to develop new, scientifically-backed food ingredients that could significantly improve gut health worldwide. The level of innovation they're pursuing is truly impressive, and your insights will be pivotal for its success. So if you can spare 30 minutes to talk about a groundbreaking gut solution please book a slot in the link below. https://lnkd.in/ewAxSEE5

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#HotTake: Retail stores aren’t a shortcut to success. Retail offers bigger POs, visibility, and cash flow Yet, it doesn’t ensure brand sustainability Case in point: JLo Beauty Despite celeb status and prime placement at Sephora, She faced challenges resulting in a US exit Retail alone doesn’t secure loyalty or repeat sales Placement isn’t guaranteed forever For lasting success, think beyond the retail PO Some markers of a sustainable brand include: Authenticity, community, differentiated formulas, and true fans Building a lasting brand legacy requires more than a retail presence – 👋🏾 Hi, I’m Monique, a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale at big retail. If you are ready to scale and invest, book a discovery call, and let’s see if we can work together.

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Key EMARKETER stat: Among US beauty shoppers of all ages, beauty and personal care shoppers are most likely to buy in-stores. But younger consumers are more likely to buy online than older consumers, according to March 2024 data from Ipsos. Beyond the chart: 39% of US consumers 55 and older buy beauty products in-store from discount or warehouse retailers. But for younger consumers, this behavior is less likely, while buying products online to pick up in-store or on social media is more likely. US beauty shoppers are most likely to discover new products shopping in-store, according to our November 2023 survey. But when purchasing new products, US beauty consumers are most likely to buy via retailer websites and apps, per the same survey. #beauty #personalcare #omnichannelretail #consumerinsights

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🙇‍♂️ You know you have a HERO product when... 👨‍🔬 The Surgeon General addresses the increasing stress and mental health challenges facing parents, noting that, as many parents would agree, raising children is tough. 📅 Today, Surgeon General Dr. Vivek Murthy issued an advisory, emphasizing that parenting has become increasingly difficult in recent times. He highlighted that the mental health toll associated with parenting is now a serious public health concern for the nation. 😦 At La-Z-Boy Incorporated, we fight for your right as a working parent to sit down, relax, and put your feet up! 😴 #NationalWorkingParentsDay #LongLiveTheLazy #LZBInsights

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We’ve heard a lot of folks talking about sustainability over the past few years. NielsenIQ found that 78 percent of US consumers say that a sustainable lifestyle is important to them. If you Google, you’ll find stats that suggest consumers will pay more for sustainable products…or that companies are spending top dollar to boost ESG rankings. So, do you drop what you’re doing, and go green with every product in your line? No. Because NielsenIQ also found that companies’ struggled to generate consumer demand for sustainable products. Sales are falling short of expectations. Better data shows you where to direct your efforts around these key trends. Here’s what I mean - We worked with McKinsey to look at which ESG claims or sustainably-minded terms were having the most impact at retail. Things like adding “cage free,” “vegan,” and “eco-friendly,” for instance. While products making ESG-related claims accounted for 56 percent of all growth over a five year period, it wasn’t uniform across categories. Less-common claims such as vegan and carbon zero made a bigger difference than more prevalent verbiage like “plant-based” and “sustainable packaging.” The most prevalent claims (such as “environmentally sustainable”) showed the least amount of influence. Differentiation matters. It’s not enough to rely on general industry research to inform business decisions. You need more nuanced, comprehensive data that offers granular insights on product demand and trends.

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It’s All About The Experience At SGG and Associates, we are well into Q1 Earnings Season and our review of the 250 consumer facing companies that are competing for share of the consumer spend, loyalty and “mindset”. Especially striking is the extraordinary and growing divide between Walmart and Target. Walmart U.S. Comp Sales (x Fuel) were +3.8% while Target Total Comp Sales declined 3.7% There is no question that both retailers have broad appeal and audiences and offered a sense of value.  But their approaches to the consumer have dramatically changed. Target was always known as the “cool” big box store, with incredible designer capsule collections that created lines before store opening and sold out immediately. Walmart built their following on the promise of “always low prices” and incredible value. Their roles have changed dramatically.  Target just announced thousands of price cuts in their recent earnings report, a clear nod to the impact inflation has had on their customers, and an attempt to reverse their sales trend. A trip through Target will illuminate their almost complete shift to private labels. Walmart has introduced a balance of designer and private label brands. In their pilot “stores of the future” concept, these brands are showcased in “shops” complete with lifestyle presentations. Newness is continuously introduced into these stores. This concept test has worked and Walmart is now rolling the concept out nationally. But even more striking is the dramatic difference between Walmart and Target in the “customer experience”. At a recent visit to a newer Target store, we were greeted by an expansion of categories that were locked behind glass doors. This included everything from laundry detergent to Men’s socks and underwear. Pressing a red button on the case would supposedly summon an associate.. who never came. During the same week at several Walmart stores, associates were folding inventory, and refreshing displays. And, when asked about the location of a department, associates ( on numerous occasions) escorted us to the correct aisle. Indeed, it’s no wonder that Walmart Doug McMillon reported in last week’s earnings report that Walmart gains were coming from higher income customer. It’s not just about price.. it’s about creating a comprehensive and compelling customer experience that includes price, presentation and service. 

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I have been quoting the title of this piece a lot lately, "Open for business" which is the title of our Q2 2024 consumer and retail M&A report. Our current piece reveals an overall dip in deal volume, but expectations for future activity with innovative buyer strategies. This paper explains the key trends, insights, and outlook for M&A activity in the consumer and retail sector. https://bit.ly/4cUmawc

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Why do some legacy brands— survive and some do not? Professors at The Wharton School look at why for some brands—Sears, Toys"R"Us—nostalgia is not enough to ensure survival, and how others—Apple, Nike—have stayed relevant without betraying what they stand for. - Sears was once a retailer where you could get pretty much anything, and even some brands you couldn’t get anywhere else. But retail changes and Sears became a “store that lacked any sort of distinction, and the legacy part of its story just wasn’t enough.” Kohl's, on the other hand, builds on its past success but adapts as customer needs change. They have maintained large stores in non-mall locations for easier accessibility, but they renovate, inside and out, more often than other, similar retailers, and have developed their own store brands valued by customers. - Customers now look to retailers to be curators who have vetted what goes on shelf on their behalf. Costco Wholesale is an example of a retailer trusted by customers for the quality of their products and that has developed a strong store brand that is recognized as not always the least expensive brand in the store but one that the store stands behind. Nike, Apple, and Patagonia are all brands that have stayed true to the brand values, identity and emotional connection to the consumer, but who have stayed current by keeping their products cutting edge. Barbie, aside from the huge boost afforded by the movie, has evolved as the world has, introducing inspirational likenesses of ABT dancer Misty Copeland, NASA mathematician Katherine Johnson, artist Frida Kahlo and others, and making Barbie more inclusive of body types, skin tones, and abilities. - Gillette, on the other hand, was blindsided by Dollar Shave Club and Harry's Inc., which undercut Gillette’s prices and went directly to the consumer with a story and a subscription model, breaking consumers’ habit of going to a store for razors. Gillette has since launched its own subscription service, but not before losing market share that will be difficult to gain back. Johnson's baby , used by generations of parents for its promise of “no more tears,” saw sales fall as consumers became wary of its additives, a trend that J&J missed because it wasn’t monitoring consumer chat or sales online. Campbell's soup, despite being iconic, has had a hard time capturing younger consumers who don’t have the same warm memories of the brand and are skeptical of anything that comes out of a can. - Legacy brands are now up against with a wider competitive landscape; retailers who were once a big deal are now one of many physical and online stores, and the amount and accessibility of information about them is nearly inexhaustible. Not only can you find out what is offered elsewhere but there are reviews on everything from pricing to experience to the company’s politics and ethical policies. #nostalgia #brand #branding #retail #customer #consumer

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Established fashion companies must invest in fashion technology. To maintain parity with the exponential surge of ultra-fast fashion, traditional players’ tech strategies must fulfill three missions. Learn more in this recent report: https://lnkd.in/gVW8nxpx

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Recapping the Walmart Fireside Chat from Founders' Innovation Day in NYC, hosted by ECRM. The session featured Amber Bynum, Vice President of Consumer Health & Wellness Sourcing at Walmart, discussing their new strategies for engaging with emerging brands. 🔥 Key Insights: - Revamped Strategy: Walmart is now focusing on more approachable, phased partnerships with new brands through regional testing and online market testing before considering national rollouts. - Philosophical Shift: Amber emphasized a shift from "bringing the world to Walmart" to "bringing the Walmart to the world," opening the door for a diverse range of products and brands. - Testing Ground: Success on Walmart.com is now a gateway to in-store opportunities, highlighting the importance of the online marketplace as a test bed for new products. - Impressive Stats: With 90% of Americans living within 10 miles of a Walmart and 255 million customers shopping weekly, two-thirds of the products sold are made in the USA. 🚀 For Emerging Brands: - Integration: Evaluate how your product fits into the Walmart ecosystem. - Content Is King: Effective use of content and social media is crucial as Walmart category managers appreciate efforts that drive store traffic. - Sales Impact: It’s essential to determine if your products drive incremental sales and increase basket sizes or just serve as another option in your category. The session provided a deep dive into Walmart’s evolving retail strategy, highlighting new opportunities for brands looking to expand their presence in the retail giant's network. What are your thoughts on Walmart’s approach to working with new and emerging brands? #retail #cpg #beverage #grocery #ecommerce Wild Bill’s Craft Beverage Co. RangeMe Joseph Tarnowski Sarah Davidson Wayne Bennett

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Overall CPG growth across all categories is an almost zero sum game within the US. Why almost zero-sum game? Data from the US Census bureau shows that resident population growth rates and household growth rates are less than 1% a year. If you analyze the pre-covid and now also the 2024 outlooks for the largest CPG category players you will notice that the US is going back to the "old" revenue growth model of low single digit annual price increases that a) mitigates stagnant or low volume growth and that b) has a larger impact on gross and contribution profitability (than an equivalent increase in volume). Shoppers and consumers as a whole are not going to suddenly consume and use 10 to 15% more CPG products each year. For emerging CPG brands and for large CPG brands, that level of double digit volume growth is going to mostly be sourced by stealing consumption/usage share from competitors within the category and more importantly from stealing usage and consumption from other categories. Or by creating a new category that does the same. Unfortunately, within the US, we also see income level bifurcation and the growing polarity between premiumization and affordability. So there is a natural tendency by many emerging CPG brand founders to "follow the money" and launch in the premiumization price-tier of a category. Few are, however, able to innovate and painstakingly build a brand that is both premium-priced and that can capture mass-market growth from large cohorts of shoppers and consumers who have switched from other brands and other categories. John Foraker has shown the industry how it can be done with emerging CPG brands. Twice. Contrarian Note 1: There are too many foo-foo brands chasing hyper-fragmented categories that are too small to ever scale, given quick growth and exit expectations of founders. Contrarian Note 2: An emerging CPG brand that can innovate a "good enough" brand-product-solution for a large underserved "affordability" segment will create category disruption in its true sense. #CPGbrands #EmergingBrands #innovation #disruption

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AI in Retail: Bridging the Gap Between Ambition & Readiness for Generative AI I recently spoke with Michelle Pacynski, Ulta Beauty & Mike Dupuis, SPARC Group LLC about this topic. Before diving in, I find it helpful to ground the conversation in recent data: 1. According to a recent Forbes estimate, the AI market size is expected to reach $407 billion by 2027. 2. A global Accenture study (July) highlights that: - Companies with strong digital capabilities (data, cloud, security, etc.) are reinventing 2x as many functions with AI & are expected to drive 2x the value creation. - 50% of executives believe they can scale generative AI across their enterprise within 6-12 months, but only 13% are confident they have the right data strategies & digital capabilities to fully leverage GenAI. Why the gap? These insights set the stage for a deeper conversation. Here are some key themes we explored: 1. AI integration frameworks they've adopted: - Assist, Augment, Automate – This framework has helped categorize the 15-20 AI pilots running at any given time. It has especially reduced the pressure to automate everything right away, allowing teams to focus on assistive & augmentative use cases first. 2. Real-world AI implementation examples that required process changes & KPI definition: - Leverage GenAI from your SMS partner to create new audiences & test custom messaging. Process changes included: new workflows for both internal & external teams. KPIs: # of new customers acquired & conversion rates. - Launch a GenAI conversational experience during peak sales to manage case loads, while ensuring real humans are available for more complex queries. Process changes included: customer query routing & escalation procedures, with KPIs focused on # of cases resolved to satisfaction, incremental revenue from case resolutions etc. 3. Keeping up with the evolving world of AI: a) Follow key professors like Ethan Mollick & Stefano Puntoni b) Stay close to the VC community to learn about emerging applications & how people are thinking about the future c) Access to product engineers & innovation through involvement on Boards (e.g., Cordial) d) Attend key tech events like CES and SXSW. 4. How AI can transform retail, from customer experience to back-end operations: - Use weather data to inform inventory buying & planning, ensuring customers get the products they want in the channel they prefer. - The retailer that best uses GenAI applications to develop personalized & on-brand communication with customer segments will create the most value. c) Empower consumers to virtually try on products & learn more about them, both online & in-store. Finally, some questions to consider: - I wish consumers knew AI… - I wish regulations did… - I hope someone develops… There’s no doubt that AI is omnipresent, but achieving meaningful impact requires strong digital strategies, partnerships, and a sharp focus on data governance. #AI #Innovation #Transformation #Leadership

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🔍 Walmart's closure of 51 health centers across multiple states is a telling development in the retail-to-healthcare transition saga. This outcome, both surprising and expected, underscores the significant challenges retail giants face when entering the complex healthcare industry. What can we learn from this venture? More importantly, what are the implications of these closures for the rural populations in these regions, and across America? Join the conversation. https://lnkd.in/dEFf6gfx #HealthcareIndustry #BusinessInnovation #RetailHealthcare

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🌟 Tens of thousands of new consumer products are launched each year, yet 95% of them fail. How can we avoid becoming another statistic? 🌟 The key lies in encouraging your team to pursue new and creative ideas by focusing on problems that need solving, rather than market attributes like age, gender, or income. This approach, known as the “Jobs to be Done” which states that consumers don’t really buy products—they “hire” them to do a job. By adopting this perspective, your team can ensure their innovations are truly aligned with what your customers need. Let’s drive innovation by understanding the real jobs our products are being hired to do! 🚀 Shortly, I will connect this concept with safety training. Stay tuned. #Innovation #ProductDevelopment #CustomerCentric #JobsToBeDone #ClaytonChristensen #BusinessStrategy #Entrepreneurship #MarketResearch #HSE

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