WHAT IT MEANS AND WHY IT'S IMPORTANT — In today's give-'em-what-they-want style of merchandising, in a market where savvy, omni-channel consumers can customize the what, when and where of the purchase, private label more and more ascends from being considered the cheapest product offering to being the best value product offering.
(THE NEWS: Study: Shoppers opt for private label over brands across specific categories. For the full story, click here.)
Milk and over-the-counter medicines ranked the lowest in categories where consumers preferred brand over store brand (26% and 28%, respectively). But for all of the other categories where the majority of consumers expressed a preference for the brand, that only spells opportunity for retailers to infuse better value across their private-label offerings.
Particularly in beauty. According to the report almost two-in-three consumers may gravitate toward a branded purchase, today, but that's a paradigm that's getting a hard look from retailers because beauty is one area that is definitely being pruned for private label expansion. You don't have to look much further than Walgreens recent acquisition of Alliance Boots, the U.K. retailer renowned for its brand development capacity, and particularly in beauty, to find examples of what a successful private-label beauty brand might look like.
Chief among those brands is Boots No7, which is celebrating its 77th anniversary this weekend with a reinvigorated brand image and new products for the U.S. market.
And that private label evolution toward more sophisticated, better value offerings isn't going to change. Fact is across the present retail landscape, if one retailer doesn't deliver on that anything-anytime-anywhere promise, the consumer will just click on the next URL that pops up on their Google search.