Consumer Good Manufacturers Are Going Retail

Consumer product good manufacturers are going retail.  Not sure when it started, but as an ex-P&Ger I'll give Procter & Gamble credit for starting the trend a few years ago with the launch of Tide Dry Cleaners and the Mr. Clean Car Wash

In the last few months this trend of CPG manufacturers opening their own retail stores appears to have accelerated.  McCormick recently opened a store in Maryland...

...while Dannon and Chobani have both opened up restaurants in New York City...

...and now Barilla, yep the pasta company, has also announced it will open its first restaurant.

So, what's behind this invest in retail outlets?  It's an attempt for brands to take stronger control of their value chain by owning the customer experience at point of purchase.  It also gives manufacturers a way to present, as well as boost, their brand equity in ways that aren't possible in a traditional grocery store.  Finally, it allows brands to uncover new consumer insights by directly interacting with its end users, test new products, and drive awareness.  Apparel brands have been doing this for years as they have understood the value of protecting their brand image and promoting the lifestyle aspect of their brands.  As brand experience continues to become a more important aspect of marketing, I'd anticipate this retailing trend continuing.