Ramp up or get left behind
It seems to be just about the hottest word in the English language these days.
Everyone is trying to pivot to get themselves into a better position to both survive the COVID-19 pandemic and be in the right place when the current crisis ends and the world gets back to some semblance of normalcy.
The world of private label and store brands is not immune to the current crisis. In some cases, private label and store brand sales have sharply increased, providing a financial cushion to both retailers and suppliers. On the other hand, the store brand category is suffering the same problems — whether logistical or financial — as national brands at mass retail.
Frankly, that is old news. Now we have to focus on how you are going to pivot to stay ahead of the curve with the industry and with a consumer who is still looking for more value and better quality during one of the craziest times of their lives. Retailers will have to take the right steps to show their consumers that they have their best interests at hand. Keeping products in stock is at the top of the list along with all of the safety issues.
Giving those shoppers a choice of product, based on need, quality and price also will play a big role in maintaining and developing customer loyalty.
Of course, that is where private label and store brands come into play. The opportunity is front and center for suppliers in this field to gain even greater market share during the pandemic and right after it ends. It will require some work, though, and that means the necessary research and development needed to create the right product for each and every category. It means having the best possible quality and the right packaging to catch the consumer’s eye.
And, finally, it means working with each retailer to develop price points that will encourage shoppers to try the product and still maintain enough profits for both the retailer and the vendor.
Bottom line: Now is not the time to get lazy and go cheap. To the contrary, it is time to put money into store brands so that you are able to, yes, pivot to each and every opportunity that comes up over the next 12 months.