Business Intelligence for an Evolving MarketJuly 23, 2017
Store Brands | July 23, 2017 –
5 ways to personalize with private brands
Despite the growth in e-commerce, consumers today are not rejecting physical stores. In fact, nearly six in 10 are “participatory shoppers” who shop multiple brick-and-mortar stores to find exactly what they’re looking for and expect a personalized, fun, convenient and digitally enhanced experience, according to Nicole Peranick, director of global thought leadership for Daymon.
As recent data from Chicago-based IRI make clear, private brands continue to dominate many nonfood categories, for several years ranking No. 1 in retail dollar sales in segments such as garbage bags, food storage bags, disposable tableware and utensils, paper napkins, hand sanitizers, moist towelettes and baby wipes. Store brands also rank in the top five in many health, beauty and household product categories.
Pour It On
When it comes to flavoring up entrées and side dishes, it’s hard to beat the convenience of prepared sauces and marinades. They allow time-pressed home cooks to create a tasty meal in no time flat. It should come as no surprise, therefore, that some segments within the U.S. sauce and marinade category continue to enjoy strong growth. For example, soy sauces and chili sauces experienced retail value growth rates of 5 percent and 6 percent, respectively, in 2016, according to “Sauces, Dressings and Condiments in the US,” a March report from London-based Euromonitor International.
A Force to be Reckoned With
It seems like millennials get almost all the attention these days and with good reason, as retailers and manufacturers bend over backward to win over this highly demanding, digitally savvy generation that will only gain in buying clout in the years ahead. But it’s important not to take baby boomers, the generation born between 1946 and 1964, and elderly consumers for granted when developing and marketing store brands. Not recognizing and catering to the needs of older consumers amounts to a missed opportunity – make that multitudinous missed opportunities, retailing experts say.
Go Bigger and Better
Like many other mature U.S. markets, the household paper products segment has been struggling in recent years. It recorded retail value growth of just 1 percent at current prices in 2016, reaching sales of $17.8 billion, according to “Retail Tissue in the US,” a February 2017 report from London-based Euromonitor International. Volume sales actually fell by 1 percent.