Lee: collaboration is key
Irwin Lee, Procter & Gamble UK and Ireland vice president and managing director, has called for a better balance between price and innovation to provide real value for consumers and industry.
Speaking in London at the IGD Convention last month Lee said: "Price is certainly a top concern these days. But we have to be careful that the intense focus on price does not force our industry toward commoditisation.
"We cannot neglect the other elements of the value equation that remain important to consumers: performance, quality, brand equity and trust."
Lee told delegates from the retail, manufacturing and supply sector why it is important to continue delighting shoppers with innovative products that deliver great value.
And he provided examples of recent P&G product innovations, which ticked the value box but were not low priced offers.
They include the recent launch of Ariel Gel, a cold wash detergent (see Product News) and Olay’s Regenerist 3-Point Cream, a £30 product that is competing well with £150 super creams.
"Consumers embrace value beyond price," he said. "With the counterbalance of innovation, we can differentiate our stores and our brands and win the consumer value equation. We’ve learned this lesson over time and across geographies."
Lee also highlighted the importance of embracing leadership opportunities, and ensuring the collaborative and strategic relationship between retailers and manufacturers continues, even in times of economic uncertainty.
"When we connect our value chains and leverage our consumer understanding, there are tonnes of opportunities for suppliers and retailers to get creative and innovative together.
"This is the essence of ‘joint value creation’. The challenge for us, in a world turned upside down, is to turn our organisations upside down as well."
Lee concluded by recommending retailers and manufacturers embrace the challenges of the current economic climate and work together to drive joint solutions on costs and deliver innovation for consumers.
"When we collaborate together, we can make a big difference. If we see only the danger in the situation facing the industry today, we will retreat into relationships driven by cost and margin, assuming consumers are only motivated by price. Instead, let’s embrace the values of innovation and the opportunities they bring."