Forbes writer: ‘Brands are trying to become retailers; retailers are trying to become brands’

In an opinion piece for Forbes, contributing writer Jason Goldberg, who cites himself as “a shopper marketer focused on the digital disruption of commerce,” cited the “burgeoning trend amongst wholesale retailers — that is, investing in their own product lines.”

In the article, Goldberg said that “retailers are under siege” because national brands are launching products directly to consumers and Amazon continues to grab grocery market share.

“It’s more difficult than ever to earn a living selling other companies’ stuff,” Goldberg wrote. “In response, many [retailers] are shifting their focus — toward selling their own stuff. But don't confuse these modern "owned brands" with "private label" tactics of the past.”

Goldberg said that the best owned brands are leveraging their unique positions to their advantage, and using customer data and insights to design products with unique styles, attributes and value propositions. And, in doing so, he says these retailers are “filling an underserved niche in the market.”

“Unlike the private label efforts of the past, retailers are also now actively marketing these brands,” Goldberg added.

He cites Target and The Kroger Co. as two retailers that are doing just that.

In response, national brands are trying to become more like retailers, as they deploy their own direct-to-consumer initiatives, Goldberg noted.

“So brands are trying to become retailers, while retailers are trying to become brands,” he stated.

To read his Forbes article, click here.