Speaking at the IGD Convention ('The World Turned Upside Down') in London, 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, who was addressing business leaders from the retail, manufacturing and supply sector, also stressed the importance of continuing to provide shoppers with innovative products that deliver great value.
'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 ensuring that 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 tons of opportunities for suppliers and retailers to get creative and innovative together,' he added. '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. Tough times call for even greater degrees of servant leadership: Leaders serving the broader organisation, enabling our people to tackle the challenges facing our business together.'
He concluded by recommending that 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.
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