This momentum is bolstering online sales of private brands, which has been on a steady growth trajectory. The pandemic and stay-at-home orders accelerated online shopping. Product search and discovery overwhelmingly begins online, so success depends on revisioning your funnel for a digital-first retailing world. Private label brands need to maximize their presence beyond brick-and-mortar. Lean into permanent change by aligning to the new path of purchaseĮ-commerce should no longer be an afterthought - it should be a forethought. How? By becoming market leaders, investing in marketing and research, and capturing shoppers’ attention in a digital-first retailing environment. Retailers need to position them as true brands of their own. With the state of private label today, and new trends reshaping shopping behaviors, private label brands have the opportunity to win over consumers. Another third prefer buying store brands over national brands. In a survey of Influenster members in July, over 90% said they currently purchase store brands. This shopping behavior could further grow the private label sector. According to a McKinsey survey, 40% of consumers tried new products or brands during the COVID-19 crisis, and of those, 40% plan to continue purchasing these new brands. Private label brands also became popular with new consumers during the pandemic when their usual brands weren’t available due to supply chain issues. Source: 4 strategies to achieve private label success According to eMarketer, shoppers choose retailers based on the store brands they offer, and 66% said they generally assume their favorite retailers will have quality private labels. Establishing high-performing private labels boosts loyalty and drives more traffic to retailers both in-store and online. Retailer experience and the private labels they offer are interconnected. Now greater opportunities exist for private label brands and products. Over the past year, especially, the state of private label has evolved just as quickly as the retail environment as a whole. ![]() But private label brands now focus on value, purpose, and quality, and are aligning their strategies with national brands. Who among us hasn’t sought out Trader Joe’s Cauliflower Gnocchi or Target’s All in Motion clothing? In the past, private label brands were considered commodities purchased solely on price. Example - Sainsbury’s sell Heinz Beans but also sell Sainsbury’s Basics Beans. First off, what do we mean when we say private label? Private label brands are products that are branded and sold by a retailer but manufactured by a third party.
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