Get creative
When retailers are debating which paper plates or cooking utensils to sell under their private brands, what might make them choose one item over another?
According to Perry Reynolds, vice president, marketing and trade development, International Housewares Association, Rosemont, Ill., the decision has been driven for the past decade or so by design.
\"Many new housewares product companies have been defined by their ability to bring new designs and functionalities to the marketplace,\" he says. \"The retailer demands products that differentiate them from their competitors, while the consumer is enticed by innovation.\"
The trend toward design has changed both the visual and functional appeal of many housewares sections in stores, and has come about, in part, because of the emergence of new materials such as silicone. In addition to its heat-resistant properties, silicone allows the introduction of a broad spectrum of colors for a number of products – including those with a function related to cooking or baking, Reynolds says.
\"If color is an influencer in consumer purchasing, as our experts tell us it is, this allows retailers to create visually appealing sections in their stores,\" he says.
Other innovations in design include ergonomic handles and new sealing technologies.
Of course, innovations within the sector used to be limited to the national brand side. But Paul Huckins, vice president of retail for De Soto, Kan.-based Huhtamaki, Inc., says it is becoming more common for retailers to grow and build their private label programs like a national brand would.
\"This is driven by superior product, innovation and a view of consumer needs and wants,\" he says.
David Ram, trade show coordinator for dbest products, Carson, Calif., says consumers also are seeking products that are environmentally friendly, have unique qualities and make life easier. He believes his companys smart carts are desirable for private labeling because they eliminate the need to use plastic bags and, therefore, reduce waste.
\"People are becoming more conscious about global warming,\" Ram says.
Improve sales
When it comes to boosting sales of private label housewares products, Huckins says there is no substitute for retailers knowing their shoppers and thinking of new ways to exceed their expectations.
\"Regarding disposable tableware, retailers need to have an optimized assortment of products,\" he says. \"This means providing a balanced portfolio of choices without making the shelf confusing. Its important to have a range of sizes, shapes and counts, but dont stop with just imitating national brands or allowing them to decide what should be on the shelf.\"
Basic merchandising tactics such as floor shippers, creative end cap displays, point of sale signage and circular ads can be very effective, Huckins notes.
\"It is particularly important to provide such reminders at the point of decision in the grocery channel, as purchases of household staples have experienced shifts to club, dollar and mass channels,\" he says. \"And, of course, take advantage of items that are typically purchased together or seasonal needs and opportunities to cross-merchandise and increase basket size. A smart promotion during summer months, for example, might be to place disposable tableware next to charcoal as a one-stop grilling solution.\"
Regarding best practices, Huckins says when suppliers and retailers act as collaborative partners – creating loyalty by offering a product, design or signature promotion that no one else has – the result is increased sales for both and a better shopping experience for consumers.
Avoid pitfalls
Reynolds believes that most mistakes occur when retailers offer private label products that do not match their customers expectations either in price or in quality.
\"Successful private label strategies often extend over many store categories, including household, and offer the customer a similar value proposition in each category,\" Reynolds says. \"A recent trend among more premium-positioned retailers is to offer premium-positioned private label products.\"
These offerings boast more features or a higher quality or functionality that makes them a good fit for the customer base.
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