Private label sales continue to grow, reaching a record $283 billion last year, with sales and unit volume growth outpacing those of national brands. While retailers are often selling private label products that are similar to, or even dupes of, national brands, their marketing approach—from innovation to packaging to merchandising—must differ from national brands to be successful. National brands often rely on storytelling and campaigns outside of the store or their own website to drive brand loyalty before consumers go shopping, EY Global Consumer Senior Analyst Jon Copestake told Retail Brew, whereas the point of sale is much more important for private labels to give shoppers options and incentivize them to buy. While retailers have long offered private labels, they ramped up their offerings following the supply chain chaos and subsequent out-of-stocks during the height of the Covid-19 pandemic. Retailers gained “goodwill and trust” during that period that they’re now leveraging with not only lower-priced private labels for budget-conscious shoppers, but more premium options, Copestake said. They’ve begun “laddering” their private label offerings across different pricing tiers to “make sure that they’re capturing much more than just a budget-conscious consumer,” he said. Keep reading here.—EC |