Major Brands' Price Hikes Create A New Opening For Private Label

A new opportunity has emerged for the private label world.

As July turned to August, Procter & Gamble announced it would be raising prices on some products in the U.S., attributing the increases to tariffs that have had an approximate $1 billion impact on its costs. The conglomerate owns more than 20 brands, including Dawn, Charmin, Bounty, Tide, and Cascade.

It was unclear which brands would be affected by the price hikes, but retailers will know before the general public, and some may already have an idea of which products will see their prices rise in the coming weeks.

While retailers will also face rising costs for their private label products as a result of tariffs, the price increases from P&G and possibly other national brands provide another opportunity for retailers and their store brands to gain market share. This allows them to convince more shoppers that their own brands are on par with or better than national brands, while also offering significant cost savings.

This strategic move may be less about product development and more about how a retailer promotes its own brands to shoppers. For example, within the diaper category, P&G owns the well-known Pampers brand, and as parents know, diapers are expensive. But Target offers an alternative that is both much less expensive and highly ranked by an independent third party.

A recent review of Target.com found Pampers Swaddlers Sensitive Disposable Diapers priced at $44.99 for Size 1, 164 count. Target’s up&up Absorbent & Soft Disposable Diapers were priced at $25.99 for Size 1, 168 count.

While I refrain from judging the quality of diapers, having not purchased them recently, Consumer Reports offered relevant insights. Target’s up&up diapers were CR’s Top Pick and Top Value, receiving an overall score of 97 and rated 5 out of 5 for absorption speed and dryness.

"It’s not often that our Top Pick and Value Pick are one and the same, but when it comes to disposable diapers, our experts were impressed by the Target up&up Absorbent Soft Diapers," Consumer Reports wrote. "The fact that it was among the most budget-friendly of all the disposable diapers we tested made it also our Value Pick."

It is this type of information that retailers need to share with shoppers. With poll after poll showing a majority of consumers concerned about product pricing and worried that tariffs could further exacerbate the issue, making it easy for consumers to find quality products that are money-saving options is an invaluable service.

Whether through apps, social media campaigns, or traditional point-of-purchase shelf tags, retailers have another opportunity to highlight the quality and value of their own brands. Shoppers and their wallets will thank you for it.