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Supporting farmers and meeting consumer expectations: the importance of effective merchandising to promote local producers

Written by
Naomie Beaugeard
6/11/2024
3 minutes

As concern for supporting local producers and responsible consumption grows, retailers face a major challenge: turning these aspirations into concrete action on the shelves.

But how can retailers better promote these products? How can they meet growing consumer expectations while ensuring optimum visibility of local products on the shelves? Here are a few concrete, strategic ways to improve in-store merchandising of local products and meet changing consumer expectations.

I - Context: Consumers in search of meaning, and retailers adapting to it

Today, the demand for local products is driven by clear and growing consumer expectations: reduced carbon footprint, support for local producers, transparency and quality. Studies show that the French want to consume more locally, especially since periods of confinement have reinforced the importance of consuming "locally".

On the other hand, consumers are looking for low-cost products, and purchasing power remains a priority. And yet there is no systematic incompatibility between these two desires. On this subject, discover our article"The 3 major consumer trends to be aware of in 2024 to optimize your sales".

In response, almost all the major chains are committed to supporting local producers, with varying degrees of success. 

Les Mousquetaires (Intermarché and Netto), which is also an industrial and retail group, recently announced "pragmatic measures" to support French farmers. For example, the group intends to double the number of local producers on its store shelves by 2027. Thierry Cotillard wants to "encourage French and seasonal consumption, and strengthen support for producers", he explains. "We have 10,000 producers today, and our ambition is to reach 20,000 within three years". (Source : Franceinfo)

The chain will strengthen its network of local producers and develop its own brands, including the "Merci!" brand, which pays farmers more fairly, like "c'est qui le patron", whose success in milk bricks in particular has reshuffled the cards in this segment. 

Supporting farmers and meeting consumer expectations: the importance of effective merchandising to promote local products

At the same time, Les Mousquetaires have announced initiatives to stop selling certain fruits out of season (such as strawberries and cherries in winter), with the aim of reducing their carbon footprint. A common-sense decision, but a courageous one in a hyper-competitive environment. 

Carrefour, for its part, offers its "Act for Food" range, focused on commitments to more responsible, local food. 

Système U "Le meilleur du local": With 80% French food products. Selection criteria include products manufactured less than 250 km away, with priority given to French raw materials and local know-how where necessary.

Leclerc's local alliances aim to support the local economy by highlighting regional products. They encourage partnerships with local producers, making it possible to offer quality products while promoting regional know-how. More information can be found on their official website.

And even chains like Lidloften perceived as price-oriented, have been called upon to commit to local products, although this is not without its challenges.

UFO: Who's the boss?!

C'est qui le Patron?! is a cooperative brand where consumers participate in the creation of products by selecting the criteria for quality and remuneration of producers. (Source : Les Echos)

Supporting farmers and meeting consumer expectations: the importance of effective merchandising to promote local products

All chains are concerned by the promotion of local producers, who can offer products that are often inexpensive, and meet the demands of customers who are increasingly concerned by the difficulties faced by farmers. With the trend towards smaller sales areas, the question arises: how do we get these new products in, categorized and promoted? 

II - Merchandising: an essential lever for promoting local products in stores

In-store merchandising plays an essential strategic role in drawing consumers' attention to local products. Today, 92% of French people prefer products of French origin, driven by a desire to support the local economy and encourage more responsible consumption (Source: Ipsos). Against this backdrop, retailers can capitalize on this trend by using merchandising strategies that meet consumers' expectations for transparency and authenticity.

Shelf organization and signage are key elements in making local products immediately visible, notably through gondola headers or specially dedicated areas. According to Ipsos, 65% of customers say they are more likely to return to a store where local products are prominently displayed. (Source: Cetelem Observer). These displays not only highlight the product's origin, but can also include information on reducing the carbon footprint, or engaging information on the journey of local producers. Finally, to mitigate the perception of the often higher prices of local products, promotions or seasonal offers can make these products more accessible, while maintaining fair remuneration for producers.

Good merchandising also requires the right tools to maximize the display and rotation of local products on the shelf.

III - A high-performance merchandising tool to maximize merchandising visibility

Good merchandising requires the right tools to maximize the display and rotation of local products on the shelf. Here are some key tips for professionals:

- Use data to optimize placements
Today, thanks to sales data, retailers can analyze consumer habits and adjust product positioning in real time. For example, if local fruit and vegetables sell better at weekends, retailers can increase their shelf presence on peak days. These dynamic adjustments enable us to adapt to customer flows and consumer trends.

- Promote partnerships with local producers at the point of sale
By stepping up communication on their partnerships, chains can highlight their concrete support for producers. Displaying testimonials or certification labels on the shelves helps to build a relationship of trust with consumers, who can directly perceive the brand's commitment. Some brands, such as Carrefour, rely on the "Origine France" label and exclusive partnerships to guarantee that products come from short supply chains and are fair to farmers.

- Training sales staff
In-store teams play a key role in promoting local products. By training staff to answer customers' questions, transparency and trust are reinforced. Brands such as Biocoop and Naturalia, which specialize in organic and local produce, invest in training their sales staff to enable them to guide consumers towards more responsible choices.

Retail VR: Innovative merchandising to help retailers promote local products

A simple, intuitive merchandising platform: Retail VR offers a 3D merchandising tool that simplifies on-shelf assortment management and optimizes the visibility of local products. Nestlé, for example, uses the platform to create simulations of customer journeys and test layouts before their actual implementation. Read Nestlé Waters' testimonial.

Optimizing the customer journey and the concept
Retail VR simulates customer journeys in the point of sale, helping to adjust shelf layout according to consumer behavior. Intermarché has used our tool to develop new staging concepts, enhancing the visibility of local products.

Team training and education
Retail VR supports team training by offering educational tools that highlight good merchandising practices. Retailers such as Balenciaga use it to educate their teams about local and sustainable merchandising.

Internal sales and virtual showroom
Retail VR offers a virtual showroom for sales teams, making it easier for buyers to showcase products. Carrefour uses this tool to showcase local products and facilitate sales decisions in an immersive, interactive environment.

Conclusion: Merchandising, an ally for responsible local trade

Faced with growing consumer expectations, the merchandising of local products represents a strategic lever for retailers wishing to make a lasting commitment to French agriculture. By integrating transparency, storytelling and fair promotions, and by promoting the local origin of products, retailers strengthen their positioning while meeting the challenges of sustainability and social responsibility. For professionals in the sector, optimizing the presentation of these products also means showing that the retail sector can be a key player in the transition to more local and responsible consumption.

Discover our 3D merchandising platform and request a free demo!

Our Retail Staging solution improves teamwork and facilitates the deployment of merchandising strategies at the point of sale.

Our Virtual Showroom solution enables your customers to browse through a digitalized physical space that mirrors the visual merchandising of your stores.

Our Virtual Store solution enables your customers to immerse themselves in a more emotionally powerful shopping experience that generates higher conversion rates.

Our Instore Activation solution enables you to meet customer requirements while simplifying the work of your sales force.

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