Cost-effective Retail

Retail Media: why retailers are building one of the most profitable sources of income in the next decade

The monetization of audiences, data and digital spaces is driving a new business unit within retail.

The Retail Media wins participation in large chain growth strategies and begins to generate opportunities for companies of different sizes.

The economic value of its own data gains prominence

For years, the main asset of the retailers was associated with the ability to sell products, manage inventories and develop efficient distribution channels. Today, a new source of value becomes relevant: information generated by millions of purchasing interactions.

Each search, transaction, consumer preference and behavior within digital platforms builds a volume of data with huge commercial value for brands and manufacturers.

This asset gave rise to the growth of Retail Media, a model by which retailers market advertising spaces within their own digital ecosystems, taking advantage of first-hand information about consumption habits and purchase decisions.

The evolution of e-commerce, loyalty programs and the digitization of customer contact points led to the development of this new business category on a global level.

The margins of the advertising business attract increasing investments

One of the factors that explains the accelerated growth of Retail Media is its impact on profitability.

While traditional retail activity operates with usually adjusted margins due to logistical costs, promotions, operating structure and competitive pressure, the marketing of advertising spaces has significantly higher levels of profitability.

Large international networks began to develop specific units dedicated to Retail Media with their own equipment, specialized technology and independent business strategies.

Companies such as Amazon, Walmart, Carrefour, Tesco and Target expanded their capabilities in this area, transforming their digital platforms into highly segmented advertising channels for suppliers and brands.

The trend reflects structural developments: retailers are increasingly active in the digital advertising market on the basis of their own assets.

The closeness with the purchase strengthens the commercial effectiveness

One of the most valued attributes of the brands is the proximity between the advertising exhibition and the purchase decision.

Retail Media platforms make it possible to impact the consumer at a time when the intention to buy already exists. This feature generates particularly attractive conversion metrics for manufacturers and advertisers.

The possibility of linking advertising campaigns with concrete sales results strengthens the ability to measure and optimize commercial investments.

This scenario drives a gradual reallocation of advertising budgets to retail ecosystems with the ability to demonstrate direct business results.

Technological developments also expand the possibilities of segmentation, personalization and performance analysis.

Competition moves to data and audience ecosystems

The growth of Retail Media incorporates a new competitive dimension within the sector.

The commercial strength begins to depend on additional variables to assortment, price or physical location. The ability to build relevant audiences, manage customer information and generate attractive digital environments becomes increasingly important.

Fidealization programs, mobile applications, e-commerce platforms and marketplaces become strategic assets to develop their own advertising capabilities.

This is particularly for companies with broad customer bases, high levels of recurrence and robust information capture systems.

The construction of data ecosystems becomes part of long-term strategic decisions.

Latin America accelerates its development in Retail Media

The region is undergoing an expansion phase driven by the growth of e-commerce, consumer digitization and the professionalization of commercial channels.

Brazil, Mexico, Chile and Argentina show progress in adopting Retail Media solutions in both large chains and specialized markplaces.

Technological investments aimed at improving analytical capabilities and segmentation tools begin to be a priority on the agenda of many companies.

The consolidation of own resources allows for strengthening income, improving margins and building deeper relationships with strategic suppliers.

The companies that develop these capacities generate new opportunities for monetization of assets that are already part of their daily operation.

Profitability, Recurrence and Commercial Intelligence

The expansion of Retail Media reflects a wider transformation within retail trade.

Retailers move towards models where information, audience and analytical capacity generate additional economic value.

Data management is of strategic importance. The quality of available information influences business decisions, inventory planning, customer segmentation and the generation of new sources of income.

The combination of trade, technology and advertising is one of the areas with the greatest growth potential within the sector in the coming years.

Organizations that develop a comprehensive view of their digital assets will be better positioned to capture opportunities associated with this market development.

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Evaluate a commercial diagnosis

Identify blocks and real opportunities for growth.


Consumer companies: the structural cost of relying exclusively on sellers

The trade structure in consumer companies is facing increasing tension.

The seller-based model as the only income-generating channel limits the ability to scale, reduces predictability and conditions profitability.

In markets where customer access changes rapidly, the exclusive dependence on sales force generates structural fragility that impacts the entire organization.

Trade unit and fragility in income generation

Many consumer companies build their sales channel on individual commercial equipment. This model concentrates income generation on the operational capacity of each seller.

The result is a highly dependent structure of personal relationships, manual management and informal monitoring of opportunities. Commercial information is fragmented and business loses traceability over its pipeline.

This dynamic has a direct impact on predictability. The company cannot project sales accurately or anticipate falling in demand. The volatility of income becomes a constant.

Impact on business predictability

Commercial predictability is built from processes, data and channel diversification.

When the income depends exclusively on sellers:

  • The pipeline is unstable.
  • The sales projection loses precision.
  • Financial planning is weakening.

Harvard Business Review reports indicate that organizations with diversified business structures achieve greater income stability and better foresight capacity.

The lack of visibility about future demand affects key decisions: production, inventory and expansion.

Limitations on commercial scalability

Seller-based growth has a clear operating limit.

Each new unit of income requires:

  • Recruitment.
  • Training.
  • Monitoring.
  • Maturation time.

This generates a direct relationship between commercial cost and growth.

Global consumer companies are migrating to models where demand generation occurs before commercial contact. Marketing, branding, digital channels and automation allow to scale without replicating sales structure in the same proportion.

Scalability is built on systems, not on individuals.

Direct impact on margin and trade efficiency

The intensive model in sellers involves increasing costs:

  • Committees.
  • hierarchical structure.
  • Operational costs.

In inflationary and price-pressure contexts, these costs directly affect the margin.

Trade efficiency becomes a critical variable.

Hybrid models that combine digital channels, distributors, e-commerce and direct sales improve productivity per seller and optimize the cost of purchasing customers.

Lack of control over the purchase experience of the customer

When the commercial link depends on the seller:

  • The customer's information is decentralized.
  • The experience is inconsistent.
  • Fidealization becomes dependent on people.

This limits the ability to build brand and positioning.

According to Deloitte, companies that centralize customer management through their own platforms and channels increase lifetime value and reduce dependence on commercial intermediation.

The company needs to control the relationship with the client as a strategic asset.

Lack of data and difficulty in making strategic decisions

Seller dependence limits data capture. Commercial interactions are not always recorded or systematized.

Without data, the company loses the capacity to analyse customer behavior, conversion rates and channel performance.

Decision-making is based on individual perceptions rather than structured information. This affects trade planning and resource allocation.

Global changes in the trade structure of the sector

At the international level, consumer companies are moving towards hybrid models. They are combined with digital channels, automation and omnicanal strategies.

The World Economic Forum and Deloitte highlight the integration of technology as a key factor in improving business efficiency and customer experience.

In Latin America, this process is moving faster in companies that seek to reduce operational dependence and gain income predictability.

Trade strategies that gain relevance

The change in the business model of consumer companies follows a clear overall direction:

Diversification of channels
Integration of e-commerce, distributors, markets and own channels.

Construction of prior demand
Marketing and branding as opportunity generators.

Digitization of the business process
Use of CRM, automation and analytics to improve efficiency.

Strategic customer segmentation
Prioritization of segments with greater profitability and growth potential.

Hybrid sales model
The seller operates as part of a wider trading system.

These strategies allow for the decoupling of the size of the commercial equipment.

Implications for consumer and retail decision-makers

The exclusive unit of sellers is no longer an operational decision and becomes a strategic problem.

CEOs and business directors face a number of key definitions:

  • What channels should be developed.
  • How demand is generated.
  • What a role the commercial team plays.
  • How predictability is built.
  • What a structure it allows to climb.

The design of the business model directly impacts on income, margins and business valuation.

Slide

Evaluate a commercial diagnosis

Identify blocks and real opportunities for growth.


Wholesale channel reconfiguration: the new competitive axis of the B2B retail

The dynamics of the wholesale channel in the consumer and retail sector it goes through a structural transformation phase driven by changes in demand, pressure on margins and technological acceleration.

Manufacturers, distributors and retailers are adjusting their business models to sustain competitiveness in a more fragmented and demanding environment.

The wholesale channel, historically focused on volume and territorial coverage, incorporates new strategic variables: logistics efficiency, commercial intelligence and digital integration capacity. This process impacts especially on emerging markets, where the traditional channel maintains high participation, but faces increasing sophistication.

Digitization of the channel and commercial traceability

The adoption of digital platforms in wholesale management is progressing rapidly. e-commerce B2B tools, order management systems and analytical solutions allow to optimize the relationship between manufacturers and commercial customers.

Reports from McKinsey and Deloitte highlight that wholesalers who integrate digital channels increase the frequency of purchase and improve demand visibility. This capacity allows to adjust assortment, prices and promotions more precisely.

Commercial traceability becomes a strategic asset. Access to real-time data on rotation, inventories and purchasing behaviour allows for more agile and aligned decisions with final demand.

Fragmentation of demand and new customer formats

The wholesale channel serves an increasingly diverse customer base: small independent shops, regional chains, specialized shops and digital platforms. Each segment presents specific needs in terms of assortment, funding and logistics.

The growth of proximity trade and the advancement of ecommerce lead to a greater atomization of demand. This phenomenon requires more flexible care models, with adapted delivery schemes and segmented portfolio.

Companies that manage to structure proposals differentiated by type of customer capture greater participation and strengthen their positioning on the channel.

Pressure on margins and operational efficiency

The inflationary context, together with the increase in logistical and financial costs, directly affects the profitability of the wholesale channel. Operational efficiency takes on a central role in business sustainability.

The optimization of routes, the automation of distribution centres and the intelligent management of inventories are strategic priorities. According to Statista's data, logistical costs represent an increasing proportion of the channel structure, which requires redesign of processes.

The use of technology to anticipate demand and reduce stock failures can improve margins and increase rotation.

omnicanal integration and change in trade

The wholesale channel is gradually integrated into omnicanal strategies. Manufacturers and distributors coordinate operations with direct channels, markets and modern retail.

This process modifies the traditional relationship based on intermediation. The interaction between actors becomes more direct, with greater exchange of information and trade coordination.

The ability to offer consistent experiences between channels becomes a competitive differential, especially in high-rotation categories.

Consolidation and new actors in the chain

The sector shows a trend towards consolidation, with mergers and acquisitions aimed at gaining scale and efficiency. At the same time, new digital players emerge that operate as intermediaries with more agile models.

Digital B2B platforms, commercial credit-oriented fintechs and specialized logistics operators expand the wholesale channel ecosystem. This diversification increases competition and accelerates innovation.

Strategic perspective: implications for enterprises in the sector

The reconfiguration of the wholesale channel sets new rules of competition. The ability to integrate technology, manage data and adapt the commercial proposal defines the positioning of the actors.

Companies that invest in channel digitization strengthen their link with customers and improve their capacity to respond to changes in demand. Customer segmentation and the customization of offers are consolidated as key practices.

Operational efficiency directly affects profitability. Logistic optimization and intelligent inventory management can sustain margins in volatile contexts.

The development of strategic partnerships with technological and logistical actors expands capacities and accelerates transformation processes.

The evolution of the wholesale channel in Latin America presents relevant opportunities for companies that manage to anticipate global trends and adapt them to local dynamics.

Slide

Evaluate a commercial diagnosis

Identify blocks and real opportunities for growth.