Some retailers used to have a three- to four-year refresh; now it’s 6-18 months. The shorter product lifecycle is an acknowledgment that consumers are more demanding than ever before – and retailers have to react faster.
Above all else, retailers need to ask, what is our strategy? Is it clear? Is it something that our team can get behind? Can we turn it into plain English? What are we going to be famous for? Those are the questions for private label. The answers need to link back to your strategy because there is enough space in the market for private label to be unique and different.
Increasing consumer influence is a two-edged sword
A retailer’s decision to avoid compromising quality is more important than ever. With digital and social media, consumers can amplify and share any negative experiences. On the positive side, social media is a cost-effective way for a unique brand to get a message out.
Also, today’s consumers have much greater control and access to much more information. In terms of marketing effort, a retailer needs to treat their own brand as more important than – or equal to – competing national brands. And since suppliers are feeding national brand information to consumers of multiple retailers, focusing on private label is a strategic way to set your own brand apart.
“Many consumers who used to be loyal to national brands have opened their eyes, minds and wallets to private label products, and many have found little or no difference between the two,” noted Pat Conroy, Vice Chairman and U.S. Consumer Products Leader, Deloitte LLP.
In order to compete effectively with Private Label brands, retailers need to plan and execute a cohesive strategy. By engaging with the right technology partners, and collaborating with manufacturer and supplier partners, retailers can expect to see significant margin boost, improved brand recognition and overall customer satisfaction.