Private brands have gained market share on national brands for three consecutive years, continuing a remarkable hot streak with no end in sight, according to the latest Private Brand Intelligence Report.<\/p>\n
Consider this staggering fact: Today, 87% of shoppers say they buy private brands during every typical grocery trip, according to the research report, produced by Daymon, which powers private label development for Advantage Solutions.<\/p>\n
\u201cPrivate brands have become essential solutions for shoppers\u2019 growing appetite for innovation, value and quality,\u201d said Jim Griffin, president of Daymon. \u201cAnd at Advantage, we\u2019re prepared to help retailers seize this moment in a multitude of ways.\u201d<\/p>\n
Gone are the days when shoppers turned up their noses at so-called generic brands. Now they\u2019re increasingly reaching for private brands across categories. In the 52-week period ending June 29, private brands gained share in all departments \u2014 from fresh and frozen foods to items such as apparel, beauty products and pet care, the report shows.<\/p>\n
And whereas they used to be a value play, today\u2019s private brands are meeting different needs and desires for shoppers, such as wellness attributes and seasonal flavors, said Chelsey Capps, director of thought leadership for Daymon. In doing so, retailers\u2019 private brands are driving traffic and building loyalty across generations of consumers.<\/p>\n
\u201cThe beauty of private brands today is that they\u2019ve developed beyond the branding of the store itself,\u201d Capps said. \u201cAnd they\u2019re now true brands connecting with consumers emotionally, transcending demographics and income levels.\u201d<\/p>\n
Time to Woo Gen Z in the Fresh Food Aisles<\/p>\n
Their time has come (and will keep on coming). Generation Z is projected to be the largest generation with the highest spending growth, per NielsenIQ data. Gen Z is expected to expand categories and drive growth.<\/p>\n
Here\u2019s the unexpected part, though, from the PBIR: Despite their affinity for fresh, healthy and \u201cInstagrammable\u201d food, Gen Z\u2019s fresh basket spend is actually down from a year ago \u2014 the only generation to decline in fresh spend compared to a year ago.<\/p>\n
In fact, only 27% of Gen Z shoppers\u2019 baskets are spent on fresh, per the report. <\/p>\n
So what\u2019s happening?<\/p>\n
Despite their interest in global trends and healthy food, many Gen Z shoppers are still learning the basics of cooking, Capps said. They grew up during the proliferation of prepared meals at grocery stores and fast casual restaurants. They value convenience, as well as quick-meal solutions, best prices available, and targeted, trend-driven assortments. <\/p>\n
The opportunity is ripe for retailers to meet their needs and fill their social media feeds with solutions such as pre-chopped veggies, unpasteurized juice and a variety of fresh salsas, Capps said. Retailers also could consider meats marinated with different global flavors \u2014 with recipes on the label \u2014 as another way to appeal to Gen Z shoppers. <\/p>\n
Advantage, which helps retailers develop and promote new fresh food offerings for Gen Z, advises retailers to learn to \u201cspeak Gen Z\u201d to best capitalize on social media trends.<\/p>\n
\u201cThe first retailer to really blow this out is going to win big,\u201d Capps said. <\/p>\n
That\u2019s \u201cno cap,\u201d as the kids would say. (Do they still say that?)<\/p>\n
As with food, private brand general merchandise has come a long way. <\/p>\n
Shoppers are now finding high-quality, on-trend clothing and apparel, as well as other home and design goods, particularly at big box retailers and club stores.<\/p>\n
In other words, retailers are transforming their general merch from basic value offerings to highly sought-after goods. Private brand general merchandise saw some of the largest gains among all departments, ending with a 30.2% unit share in the 52-week period ending June 29, according to the PBIR report.<\/p>\n
Look no further than Aldi\u2019s \u201cAldidas\u201d shoe line as one example highlighted in the report. Customers anticipate and even line up for the shoes, Capps said. In another unique crossover, the upscale Southern California-based grocer Erewhon partnered with Ugg to create a private brand beverage alongside a co-branded Ugg\/Erewhon shoe. <\/p>\n
More generally, private brand apparel is increasingly on-trend and higher-quality \u2014 and shoppers are taking note, Capps said. <\/p>\n
Creating hot and desirable general merchandise offerings requires a longer runway for planning than food, Capps said. At Advantage, Daymon\u2019s experts forecast trends years in advance by evaluating social trends, pop culture events, and other forms of analysis. <\/p>\n
Of course, creating the products alone isn\u2019t enough, she said. Retailers must invest in omnichannel marketing to lure in shoppers and build loyalty.<\/p>\n
Daymon can help with that, too. <\/p>\n
Parents, raise your hands if you\u2019re already tired of making your kids\u2019 school lunches. <\/p>\n
Yep, that\u2019s what we thought. Parents spend an average of $80 per child per week on school lunches, according to the PBIR report. And 91% of parents are committed to making healthier choices for their children. <\/p>\n
But parents need more options throughout the year \u2014 and retailers can help.<\/p>\n
Through private brand innovation, retailers can provide parents of school-age kids with healthier, more convenient and more creative solutions, Capps said. Retailers should consider lunch kits, snack pack sizes of salty-snack options, different formats of the ever-popular fruit snacks and other innovations.<\/p>\n
Quality is paramount. After all, one negative experience could dampen enthusiasm not just for the product in question, but for the entire private brand and the retailer. <\/p>\n
The good news: 85% of consumers perceive private brand quality to be as good as or better than national brands, according to the PBIR report. <\/p>\n
\u201cThere\u2019s a real opportunity to better strategize throughout the year on new flavors and develop products that are kid-focused,\u201d Capps said. \u201cParents are all busy. We\u2019re all strapped. How do you make it healthier and easier for them?\u201d<\/p>\n
Read the full Private Brand Intelligence Report.<\/p>\n","protected":false},"excerpt":{"rendered":"
Private brands have gained market share on national brands for three consecutive years, continuing a remarkable hot streak with no end in sight, according to the latest Private Brand Intelligence Report. Consider this staggering fact: Today, 87% of shoppers say they buy private brands during every typical grocery trip, according to the research report, produced […]<\/p>\n","protected":false},"featured_media":2598,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"mrktblog-category":[41],"class_list":["post-2932","mrktblog-posts","type-mrktblog-posts","status-publish","format-standard","has-post-thumbnail","hentry","mrktblog-category-advantage-news"],"acf":[],"yoast_head":"\n