Strengthening the Private Brand ConnectionMarch 4, 2018
All things private brand are included in the recently released Daymon Private Brand Intelligence Report 2018, now available at Daymon.com. The Report is built on proprietary research revealing consumer views and attitudes toward private brands and how their perceptions have changed over time. It features insights from a team of Daymon analysts, Thought Leadership and company leaders who utilized the data and customer surveys to develop a list of eight key action steps retailers can use to up their game with private brand offerings.
One of the top action steps outlined for retailers is to connect private brand more deeply to local and cultural roots by engaging in and outside of the store to promote interaction across the shopping journey from pre- to post-shop.
“With diminishing brand and banner loyalty, retailers have to get more creative to encourage greater connectivity with today’s (and tomorrow’s) shoppers. In fact, research has shown that only 49 percent of shoppers say their main grocery retailer communicates with them in a relevant way,” explains Dave Harvey, Vice President of Thought Leadership for Daymon.
Some retailers both in the U.S. and abroad are taking steps to shift these perceptions by making strong local and cultural connections through their banners and their private brands to build a more personal relationship with shoppers. For example:
- S. regional grocery retailer Lowes Foods has installed “Community Tables” in several stores in North Carolina. Shoppers are invited to the table to sample products from local businesses, participate in cooking classes given by local chefs, and more—all in an effort to feed shoppers’ interest in collaboration.
- Estonia-based petrol station chain Alexela Oil introduced local farmer’s market stands in select stores. Farmers are able to book a stand free of charge and sell their home-grown goods, such as fruits, vegetables, honey, milk, juice, jam and handcrafted items.
- Midwestern U.S. supermarket chain Hy-Vee has a meal-prepping party program that runs like a local book club. A group of five to 12 customers schedule a time to gather in a kitchen-equipped club room in the store to prepare a recipe together, and then divide up the meals for everyone to take home.
“A natural challenge with personalization is an associated incremental cost,” says Nicole Peranick, Senior Director of Thought Leadership for Daymon. “Private brands are uniquely positioned to allow for scalability and profitability of a more customized proposition for shoppers, thanks to their inherent flexibility and retail control.”
Peranick also notes that consumer skepticism of corporations and “Big Food,” coupled with trend-forward innovation in private brands from retailers like Trader Joe’s, have fueled a reconsideration of brand choice in favor of private brands.
“Not only do private brands build on a retailer’s value proposition with high-quality items at an affordable price, but they can also offer authentic solutions to make consumers’ lives easier. Private brand products that cater to consumers’ needs are well-positioned to drive sales and loyalty,” adds Peranick.