A new report from private brand development firm Daymon shows that private label is poised for long-term growth amid ongoing inflation. The 2022 Private Brand Intelligence Report looks at consumer attitudes towards private brands, including trust, brand recognition, trends and more.
“Retailers have continued to face and overcome ongoing challenges including shifts in consumer behavior, supply chain complexities resulting in out-of-stocks across categories, and inflation taking hold,” said Daymon in the report. “While many private brand retailers around the world needed to press pause or slow down on innovation strategies to solve for these immediate challenges, consumer demand for innovation has sped up. What were once shopping preferences before the pandemic are now expectations. In order to meet changing consumer expectations and maintain brand and banner relevancy, retailers must rejuvenate their private brand innovation strategies or risk falling behind to the competition.”
Key findings in the survey show that U.S. consumers have an overwhelmingly positive relationship with private brands. 89% of those surveyed now trust private brands just as much or more than national brands. 75% of consumers prefer stores to have both value and premium private brand products.
When shopping for private brands online, 54% of shoppers cite price as a top driver. 46% cite lower private brand prices online compared to name brands, 29% cite attractive coupons and mobile offers, and 26% say that the online selection is better than in stores.
When it comes to a private brand strategy, Daymon cites three innovation principles: focus on the consumer, delivery across the portfolio, and set appropriate KPIs.
“With evolving consumer needs and values driving purchasing, retailers that execute their innovation strategies by focusing on the consumer will solidify a stronger connection to their private brands,” said Daymon. “Retailers must identify the short- and long-term trends that are driving purchasing, shift their strategy to encompass these trends, and incorporate technology and proper merchandising to create high visibility.”
The full report from Daymon can be found here.