Private HonorsFebruary 9, 2016
Grocery Headquarters | February 9, 2016 – It pays to be different. This is a lesson that manufacturers have learned over the years, and retailers—in regard to their own brands—are finally picking up on.
There has been a seismic shift in the way consumers think about private label grocery brands. “Consumers are moving away from big brands and embracing smaller, local brands and those that more closely align with their new badge values,” says Shilpa Rosenberry, senior director, global consumer strategy for Daymon Worldwide, based in Stamford, Conn. “The good news for retailers is that more private brand programs today are able to deliver on these values.”
With younger generations, like Millennials and Gen-X, showing a lower percentage of brand loyalty—20-30 percent, according to data from WSL Strategic Retail—there is more room for private brands to capture market share.
“Private brand share continues to grow as retailers realize that outlets with the highest share of private brands across the store, from traditional supermarkets and warehouse clubs to specialty retailers and discounters, are more successful and profitable overall,” Rosenberry adds.
Some trends that Daymon anticipates seeing in private brands for 2016 include growth of healthier options among private label, in both perimeter and center store categories; and private brands going above and beyond to deliver on consumer values, including flavor and fragrance, proactive health benefits, restaurant innovation and production techniques.
Many of our winners are ahead of the curve, and already incorporating these ideas into their offerings.