Daymon report highlights private label’s innovation opportunity
Retailers have the ability to gain much more from their private label business by stressing the abilities of the category to attract more consumers and build a better relationship with them over time.
That, according to Daymon’s 2019 Private Brand Intelligence Report, will encourage more merchants to shift their private brand strategy from one that emulates national brands to one that innovates its own set of new products.
“We see this study as a call to action for retailers,” said Nicole Peranick, the Stamford, Conn.-based company’s senior director of retail transformation. “It shows that the industry can take a more leadership approach to private brands and the results can mean that the category can help differentiate retailers and help them better connect with shoppers.”
“It also shows that consumers are clearly giving retailers permission to pioneer with private brands. We are very bullish on private brands and it has outpaced national brand growth by six to one.”
Among the findings are the fact that consumers are more interested in cleaner and healthier products that limit their impact on the planet and will spark continuous innovation. Also, it found that shifting demographics are fragmenting consumer values and creating demand for private label products that cater to unique needs. Nearly half of shoppers find options that fit their specific lifestyles very important to brand choice, the report stated.
Another finding is that 6-in-10 consumers want brand and product experiences that stimulate their senses. To differentiate on and off the shelf, private label products must focus on sensory levers that facilitate dynamic interaction with their customers, the report found.
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