The Rise of Purpose-Driven Private Brands

“Definiteness of purpose is the starting point of all achievement,” goes the famous quote by W. Clement Stone. For private brands, a genuine sense of purpose can be a source of invigoration for brands, motivating staff and facilitating meaningful ongoing engagement with consumers who share similar core values. 

A strong brand purpose has the potential to unlock future customer loyalty and sales performance, particularly as younger, idealistic consumers mature (while ‘seniors and retirees’ currently spend most on private brands, according to IRI). But how do private brands ensure messaging and storytelling convey authenticity, rather than a hollow copycat message? 

First, let’s take a moment to define purpose. Well, simply put, a brand’s purpose is its reason for existence (beyond making money, of course). It defines the role the brand serves and the ways in which it may contribute to a better society or a better world. 

According to one global study, 94% of consumers believe it’s important that the companies they engage with have a strong purpose. And it’s not exclusively important to consumers either, as rising numbers of investors look for Environmental Social and Governance (ESG) parameters before backing businesses. 

Make the brand’s purpose a priority 

As David Mattin (founder of weekly newsletter New World Same Humans) once put it; businesses used to be black boxes. From the outside, consumers could only see the brand – the outer packaging. Now, as a result of our increasingly connected world, businesses are glass boxes and, “...the brand is everything. Every person. Every process. Every value. Everything that happens, ever.” Therein lies the importance of purpose.

When brands are created with a mission and vision, they are given a driving force that can be used to inform every decision and strategy. Customers can easily find out what your brand says it stands for, but they’ll only believe it when they see it – through the actions you take. But what exactly are those actions? What’s working well for existing purpose-driven private brands and how can other brands learn from them? 

Create partnerships with purpose  

By partnering with organizations whose values align with their own, private brands can demonstrate an openness to collaboration as a means to effect real change. The ‘working together’ approach is inherently optimistic, because it suggests bigger picture thinking and a willingness to look beyond the world of the brand. In the words of Helen Keller: ‘Alone we can do so little; together we can do so much’.  

A great example of a brand building meaningful community relationships is Co-Op, a UK retailer we have worked with for more than 25 years. Co-Op was founded on a set of values and principles designed to deliver a fairer, better way of doing business – its overarching purpose. These values are shared and upheld by the International Co-operative Alliance and are central to what it means to be a co-operative (not just the Co-operative).  

Giving back to the community is one of those values and it’s something Co-Op does regularly. Last September, for example, the retailer announced its partnership with Your Local Pantry, which supports those struggling with the cost-of-living crisis through neighborhood food hubs where, for a few (dollars) a week, members can choose groceries worth many times more. The Co-Op’s impact, tripling the Your Local Pantry network within three years, is tangible, measurable and in line with the retailer’s ambition to provide dignified long-term solutions to food insecurity.  

Prioritize eco-friendly packaging  

According to a study by Deloitte, 66% of global consumers are willing to pay more for products and services from companies that are committed to positive social and environmental impact. Its most recent survey into consumer attitudes and behaviors around sustainability revealed that consumers’ most valued environmentally sustainable practice was sustainable packaging, which includes packaging that is biodegradable and/or made from recycled material. This is something all brands can invest in, whether through committing to reducing or eliminating certain materials from their packaging (gold foiling is often first to go) or through setting ambitious, industry-leading targets. A great example of a retailer doing the latter is Walmart.   

Walmart has a global goal of achieving 100% recyclable, reusable, or industrially compostable packaging for its private brands by 2025. It takes design optimization seriously, eliminating unnecessary packaging and favoring ‘right size’ packages. When it comes to on-pack cues, the retailer prominently communicates the pack’s recyclability, giving consumers the information needed to meet their own sustainability goals. In the U.S., for example, Walmart is increasingly incorporating the How2Recycle label into its food and consumable private brand packaging.  

By packaging products in a way that makes consumers’ lives easier when it comes to recycling or reusing, Walmart is demonstrating an ‘in-it-together’ approach that adds value and builds loyalty. Brands looking to emulate this approach consider not only the packaging material, but the format (ensuring products are protected while eliminating excess) and prevalence of on-pack sustainability cues and recyclability messages. 

Assess the supply chain and keep it local 

Interest in the provenance of products has increased following the Covid pandemic, which demonstrated the fragility of supply chains and trained people’s focus on the importance of championing local businesses. Schnucks is a great example of a retailer that invests in the local economy, partnering with companies, farmers, and vendors “to support the best the Midwest has to offer.” Its partnership with Foodshed.io, which connects small-scale farmers to supermarkets, has enabled the retailer to expand its local produce offerings by 173% year on year.  

An exclusive poll about buy-American shopping preferences, carried out in 2022, found that nearly three-quarters (72%) of respondents say they seek out American-made products very often or somewhat often. The same is true in the UK, with a 2022 survey revealing that 69% of UK consumers are more likely to buy British goods now than ever before. For brands, the best way to convey local supply chain choices is via packaging. On-pack callouts, flags, and color cues can be used to great effect to foreground the locally sourced message.  

Brands that take the time to set out their purpose and demonstrate it through action create an emotional connection with customers. When people know why a brand exists and what it stands for, they are more likely to trust and support it, leading to increased loyalty and a stronger identity, and differentiating it from its competitors.