The basics of marketing tell us that attaching a prominent or reputable face or name to a product increases the likelihood of catching someone’s attention, and eventually sales of a given product. The examples of this with well-known celebrities and name-brand companies are endless. In the private brand space, it’s more common than you might think. Just like branded products, store brands thrive when assisted by a popular influencer or social personality.
According to a study released in June by Inmar Intelligence, 84% of respondents said they had made a purchase based on an influencer’s recommendation, with 61% of consumers saying they listen to influencers because they trust their product/category expertise.
“Retailers should utilize influencers to be part of conversations that are already happening in the social space,” said Leah Logan, VP of media products at Inmar. “Retailers should be using tools like social listening to understand how they add value to conversations happening and then utilize authentic, vetted influencers to use their own voices to talk about what’s important to the retailer. They need to find influencers who actually relate to their shoppers and can be part of the conversation to relay their message.”
Katie Burkhardt, director of brand strategy at Daymon agrees.
“A collaboration should, first and foremost, reflect the preferences of the retailer’s current consumer base,” Burkhardt said. “The bonus of working with an influencer is that they come with a large, devoted fan base. Designer and celebrity collaborations also help give a private label credibility. The goal is to create excitement and newness in a retail environment where many products are alike.”
Similar to Amazon’s model of unpaid promotion by influencers, many companies have found it profitable to gain marketing just by developing a core fanbase. Chains like Trader Joe’s, Costco and Aldi have all developed strong loyalty particularly among millennials, which is then used in a way of free marketing on social media.
Private label products are especially popular with these fanbases for being cheaper food alternatives with unique flavors. Stay-at-home mom Diane Youngpeter runs a blog called “ALDI Nerd,” and manages a Facebook fan group with nearly half a million members sharing their love for the discount chain. She is not paid by Aldi, and is instead a passionate fan, whose interest has led to added awareness for the grocery chain.