New Year, New RulesJanuary 29, 2018
When I reflect on the retail industry in 2017 I get a flash of highs. New retailers entered the U.S. market to change the game as we know it, voice-enabled technology made its way into the mainstream, and the holiday shopping season got the biggest boost it had seen in nearly a decade. Now, as I look ahead to 2018, I have the feeling that we’re on the cusp of something big, particularly in terms of Private Brands. While it’s true that I don’t have a crystal ball to see what this year has in store for us, I do have the next best thing to share with you: Daymon’s first Private Brand Intelligence Report.
Based on proprietary survey data, category research from Daymon analysts and insights from experts under the Daymon umbrella, the report outlines the state of the industry – where it was yesterday, how your company benchmarks today and what to expect in the next year of retail madness. More importantly though, it tells you where to double down now that 81 percent of shoppers buy Private Brand products on every or almost every shopping trip.
Now, I’m not going to give away the full report here. You’ll have to get the scoop when you download the study on our website. But, to give you an idea of what we think 2018 has in store, here are the top ten predictions from the report that we see coming down the pipeline.
- Discounters Will Call It Quits on Price-Only
Discounters are hijacking consumer spending from traditional supermarkets with 45% of shoppers saying they visit value-oriented stores more often than before. Retailers will respond to this upping the ante on experiences and reinventing the store.
- Private Brands Will be On Par with National Brands
85% of shoppers trust private brands just as much as national brands. So, with consumers onboard the gravy train and potential profitability on the table, retailers will focus on taking their Private Brand portfolios to the next level.
- Manufacturers Will Bypass Retailers
Thanks to a boom in online shopping and the growth of IoT (internet of things), manufacturers have free reign to nix the middlemen. Look out 2018, it’s the year of direct-to-consumer.
- Center Store Will Get a Makeover
Consumers spend 18% of each shopping trip in the center of the store but the average supermarket devotes 80% of its floor space to center aisles. Retailers will give this section a facelift by revamping spaces, integrating digital and blurring departments.
- The Race to Digitize Will Go into High Gear
70% of consumers agree that technology has made it easier than ever to take their business elsewhere. Therefore, retailers will look to generate branded digital ecosystems to incentivize shopper loyalty.
- Acquisition and Venture Capital Will Upend Innovation
In 2017, deal activity in the U.S. retail space reached the highest level in a decade, and it’s anticipated to continue as retailers replace innovation with acquisition.
- Retail Will Invest in Upskilling
64% of consumers expect companies to respond and interact with them in real-time, which is why building expertise among employees will be a huge differentiating factor for those on the leading edge.
- New Niches Will Make New Formats
Fragmented consumer preferences are driving innovation in everything resulting in a retail landscape devoid of traditional channel boundaries. Look out for opportunities in organic formats, unmanned stores and more.
- Co-Creation Will Drive Data Generation
69% of engaged shoppers want to give feedback and the industry is giving the people what they want by integrating crowdsourcing technologies that allow shoppers to test new products and services in real-time.
- Transparency Will Boost the Bottom Line
Social responsibility and transparency help consumers filter through the noise so expect retailers and brands to respond to the 69% of consumers seeking more information about a company’s personal, social, economic and environmental practices.
These predictions just scratch the surface of what the report offers. So, if you would like to be on the front line of all things Private Brands, download the report to learn more and be sure to drop me a note to let me know what you think at firstname.lastname@example.org.