Release time:2019-04-19 Number of visits:497
How to Gain a Competitive Edge in Private Label
New Daymon report provides guide for retailers looking to up assortment success
With 98% of retailers’ national brand assortment the same as the competition, innovation and differentiation in private label is an important way for grocers to get a leg up.
Indeed, private brands have an opportunity to lead the industry, with a 4% growth in private label growth in 2018, almost six times that of national brands, according to research from Daymon Worldwide. Additionally, 53% of consumers surveyed in Daymon’s research said they shopped at a store specifically for its private brands, and 81% bought private brand items during every shopping trip.
“Consumers are empowering retailers to be pioneers—to offer new and unique private brand products that align with their constantly evolving preferences and needs,” said Michael Taylor, president of Daymon, who added that as shoppers become more “channel agnostic,” retailers must “pivot from category-led updates and focus on consumer-centric platform innovation.”
This, he says, will help retailers raise the profile of their private brand programs and differentiate themselves from the competition.
To help retailers maximize the opportunities in this lucrative category, Daymon released a 2019 Private Brands Intelligence Report, which sheds light on three major trends that will impact the future of private brands. These trends are as follows:
Plant-Centric: Cleaner and healthier innovations are expected to make their mark across channels such as grocery, beauty, personal and other nonfoods categories. The report points out that this trend is expanding rapidly, expanding from only a handful of categories in 2014 to more than 90 in 2018, representing $13 billion in cumulative sales in 2018.
Functionality Redefined: Consumers are increasingly looking for new and innovative private brand products and services that cater to their unique needs. According to the report, “science, specialization and simplicity are embedded into the new definition of functionality,” with 49% of consumers finding options fit their personal lifestyles very important to brand choice.
360-Degree Sensory: Brand and product immersion is increasing in importance, with Daymon’s research showing that 59% of consumers seek this engagement while shopping. Six in 10 shoppers desire experiences that stimulate their senses. To meet this need, Daymon suggests that retailers focus on sensory levers that encourage interaction when marketing their private brands.
The research was conducted using proprietary analyses, consumer surveys, market research and global intelligence.