October 14, 2016
Every time I visit with a retailer, one of the top issues on their minds, amid the hundreds of priorities they are juggling, is the development of their private label brand. This makes sense because, when we consider factors such as the overall decline in sales some retailers are experiencing, the arrival of more deep discounters, and disappearing trade allowances, the development of a private label brand holds a lot of promise for increasing a retailer’s brand recognition and generating more sales.
To further explore and understand some of the concerns retailers face today, Daymon recently conducted an executive survey inquiring into the aspects of the business that matter most to retailers today. Among the responses from executives, there are some interesting themes. Among respondents, 52% said they are most interested in capitalizing on private/own brands.
Also ranking high on the list are finding ways to leverage big data analytics, driving customer loyalty, and differentiating through customer experience. Many executives are also concerned about their ability to respond in a timely manner to deep discounters, with implications of their arrival in various US markets.
The common thread among all of this feedback leads me to believe there is a solution available to nearly all retailers through private brand development. Whether a retailer has an established private brand or whether that is the next step within their growth strategy, retailers don’t have to go it alone. Daymon has a history of working to create, implement and promote private brands. There are a number of best practices and private labels we have implemented over the years which have become big successes for the retailer, both from a branding and a sales perspective.
Innovating in food and winning in e-commerce were also cited as top of mind for executives. We are seeing a number of technological developments and trends which are helping retailers to be innovative within their space. For example, the emergence of technology such as augmented reality and compelling loyalty/rewards programs have been an intriguing and welcome addition, and something customers are enjoying and seeking out. The use of technologies such as augmented reality apps looks different in different settings, but they present new options for almost every retailer who is interested in being innovative and engaging with customers in new and exciting ways.
What are you finding to be some of your recent successes and challenges? How has private label been received among your customer base, and how would you like to see it grow? Send your comments to me directly at JimH@daymon.com.