Asda's boss unveiled a new age of "democratic consumerism" last week. Is it a brave new policy or just a clever marketing ploy, asks Chloe Ryan


"The flair ain't there!" Andy Bond famously proclaimed four years ago. In a plea for more excitement and innovation, the chief executive of Asda grabbed the headlines when he told startled delegates at an IGD conference the supermarket trade needed to be revolutionary.

And last week, he had a stab at being revolutionary himself. A new era had come, he proclaimed during an Asda press conference, an era of "democratic consumerism". The public no longer trusted politicians or banks or other traditional authority figures, so they were increasingly looking elsewhere including supermarkets.

Some observers no doubt remembering Bond's speech four years ago were sceptical. Would there be webcam in the boardroom, one asked. If consumers wanted it, Asda would consider it, came the reply.

Those who smelled a headline-grabbing marketing ploy had their suspicions roused further when Bond took a swipe at Tesco and Sainsbury's, claiming customer loyalty could not be bought with "plastic points" or loyalty schemes.

Bond pressed on, insisting Asda would win loyalty by being completely open. He unveiled three new initiatives: 'chosen by you', 'your Asda' and 'bright ideas'. Under 'chosen by you', Asda is inviting shoppers to help it select its product line-up by becoming registered members of an online panel.

"Your Asda' has seen webcams introduced to suppliers' factories to allow consumers to see what's going on behind the scenes. (In a literal interpretation of this principle, Bond revealed it was already constructing a store in Wales with glass brick walls). And 'bright ideas' gives shoppers the chance to earn hard cash by suggesting ideas that will save Asda money. To whet people's appetites, Bond cited the example of the US Wal-Mart shopper who suggested the lights inside vending machines be turned off and was rewarded with 5% of the first year's savings.

Consumers may have been won over but rivals and suppliers are likely to need more persuading. The consensus is that the transparency concept is a gimmick. Proposals such as installing webcams in factories would be too difficult to implement, says Dole marketing manager, Giles Shapley.

"I understand why they would see value in doing, but I would be sceptical as to its value," he adds. "Would we want to participate? Pass. I think you open yourself up to all sorts of issues, not least whether employees would want to be observed over the internet by all and sundry."

Increased customer involvement, however, elicits a more positive response. It sends a positive message to shoppers that Asda wants to improve its offering, say observers, adding that the feedback will help compensate for the customer insight Asda loses out on by shunning loyalty schemes.

"If a Tesco Clubcard member bought a can of Coca-Cola this week, Tesco could look at its soft drink purchasing for the past five, six, seven, eight years," says one supplier. "Asda can't do that."

Shapley agrees that opening up the business to more consumer input makes sense, highlighting the extensive use of consumer panels in the US. "It is extremely powerful if it is done correctly," he says. "Del Monte foods has been using a pets panel in the United States for years to let pet owners come up with ideas for NPD."

Rivals are dismissive, though. "We do customer panels already, as does everybody else," says one source. Another supplier agrees consulting with shoppers will give Asda more customer insight, but believes the real motive is promotional. "This is certainly a marketing initiative designed to show that Asda cares about what its consumer wants."

PR ploy or not, Bond's "democratic consumerism" demonstrated that the flair is certainly there. The question is: is it underpinned by real substance?

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