Collaboration, innovation, transparency.
Discover the key challenges addressed
within the Trace One Network.
Growth, regulatory compliance, cost control.
The Trace One Network delivers
concrete benefits for all stakeholders, whether
retailers or manufacturers.
Associations, solutions and technology partners.
Discover the contributors
to the Trace One Network.
A collaborative retail business network, enhancing communication so companies can create innovative products, boost efficiency and delight consumers.
a collaborative solution
that covers all stages
of the product lifecycle.
Trace One Insight removes data silos, improving efficiencies, time to market and business performance.
“Where do you see yourself in five years?” is a typical interview question. If you were to ask private label (PL) brands the same question, they’d likely say, “everywhere.”
For a whole range of perfectly good reasons, private brands have lagged in the U.S. compared to Europe… but that’s about to change. The merger of Ahold and Delhaize – both of which have very strong private label ranges in Europe – gives the newly formed group the scale and reach it needs to effectively deploy a private label strategy. In combination with the skills they have access to from the European arms, you should expect to see expansion in their Private Label ranges very soon.
Meanwhile, Aldi and Lidl are eyeing significant expansion in the U.S., with private label being their business model. Lidl’s owners also own Trader Joe’s, so not only do Lidl U.S. have access to the mass market private label skills of Lidl’s European divisions, they also have access to folks who have been doing it successfully in the U.S. for years.
Retail is transforming into an experience economy, so customers are happy to shop at retailers such as Aldi and Lidl because there is a different store experience. Consumers are willing to make the switch from national brands because the balance of quality and price works for them. In particular, millennials are less loyal to traditional brands and more willing to try emerging brands. Quality private brands are key as millennials stay well informed about brands, including store brands and where their food comes from.
Tools and networks are becoming more mature and accessible, making it easier to develop Private Label products. Due to all of this, private labels will likely expand throughout the U.S. in sooner than five years.
Private Label brands are critical to a retailer’s value image, supporting margin and profitability. When used effectively, Private Label products offer exclusivity and drive increased customer loyalty. Grocery retailers are able to differentiate themselves by offering exclusive products to their store, ultimately extending and expanding their brands.
As more retailers discover the potential Private Label products hold, the Private Label marketplace will flourish. Meanwhile, the growth of retailers such Aldi, Lidl and Ahold Delhaize could play a major role in the prosperous future of private labels.
Interesting times ahead…
Last year, Halloween delivered £325m in sales in the UK and $6.9 billion in sales in the US – retailers and suppliers will be keen to exploit the period’s growing potential this month. There are a number of important steps that retailers and manufacturers can take during Halloween to innovate in private label products, engage with consumers, and make the most of this multi-million pound opportunity.
Consumers are now demanding more information than ever. The growth of the internet and the spread of mobile devices mean that information on almost any subject is at our fingertips. This is revolutionising the way that people work, play and shop. we are entering an “Age of Disruption,” where retailers that deliver a customised experience to consumers across all devices will be the most successful.
The last week of June saw the arrival of The Consumer Goods Forum Global Summit in New York, where Trace One was in attendance along with some of the biggest names in the food and drink industry. One of the main themes discussed was the importance of consumer trust within the industry, and why retailers...