{"id":1675719,"date":"2023-04-20T16:13:54","date_gmt":"2023-04-20T23:13:54","guid":{"rendered":"https:\/\/www.retailpro.com\/News\/blog\/?p=1675719"},"modified":"2023-05-08T10:29:49","modified_gmt":"2023-05-08T17:29:49","slug":"name-brands-take-on-private-label-competition","status":"publish","type":"post","link":"https:\/\/www.retailpro.com\/News\/blog\/index.php\/2023\/04\/20\/name-brands-take-on-private-label-competition\/","title":{"rendered":"Name brands take on private label competition"},"content":{"rendered":"\n
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As inflation heats up, store-brand and private-label products are becoming more attractive to consumers who typically buy more expensive name-brand goods.<\/p>\n\n\n\n

Recent economic reports project real GDP growth will slow to 0.7 percent in 2023.<\/p>\n\n\n\n

Such a cloudy financial outlook makes private labels popular as shoppers actively seek ways to get more for their money.<\/p>\n\n\n\n

The trend has given manufacturers pause as they consider how to retain customers in the face of less expensive competition.<\/p>\n\n\n\n

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Upgrading private-label brands<\/h3>\n\n\n\n
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Years ago, store-brand products often had bland packaging and were often not in the same league quality-wise as their more expensive competitors.<\/p>\n\n\n\n

But today, that\u2019s changed, with stores offering good quality at value pricing.<\/p>\n\n\n\n

Some, such as Target, are marketing brands that are sought-after, including Threshold, Good & Gather and Up & Up.<\/p>\n\n\n\n

For example, the food segment has seen significant growth in private-label success in the past three years.<\/p>\n\n\n\n

The Food Marketing Institute reports that over 40% of consumers surveyed said they are more likely to buy private brands now than before the pandemic, and plan to continue doing so.<\/p>\n\n\n\n

Nationwide brands need to actively market themselves to avoid being drowned out by an impending tidal wave of less expensive competitors.<\/p>\n\n\n\n

To maintain relevance, experts suggest following the following tips.<\/p>\n\n\n\n

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Value in the details<\/h3>\n\n\n\n
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Name brand products need to appear relevant to customers by clearly highlighting their features.<\/p>\n\n\n\n

That may include describing hand crafting, attention to detail or a unique recipe, which would justify the higher price.<\/p>\n\n\n\n

In addition, the price\/value proposition should be appropriately marketed to the target audience.<\/p>\n\n\n\n

Branded products must differentiate how they differ from private label goods, and how those differences benefit the customer.<\/p>\n\n\n\n

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Bonus perks creating loyalty<\/h3>\n\n\n\n
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By providing related services, name brand products cultivate loyalty.<\/p>\n\n\n\n

For example, Williams Sonoma provides in-store cooking instruction. Customers can learn new techniques, try out recipes and buy equipment all during a single visit.<\/p>\n\n\n\n

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Values-based private label brands<\/h3>\n\n\n\n
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Having a social consciousness is attractive<\/a> particularly to shoppers in the younger generations.<\/p>\n\n\n\n

For example, Patagonia\u2019s Worn Wear appeals to those shoppers committed to reducing overall consumption.<\/p>\n\n\n\n

And Lush cosmetics are cruelty free, while Seventh Generation is environmentally friendly.<\/p>\n\n\n\n

The key is to distill the brand\u2019s message into something relatable to customers, and promoting it as fundamental to the product.<\/p>\n\n\n\n

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Lower cost private label brands for comparable quality<\/h3>\n\n\n\n
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The primary reason private label products are bought initially is the cost factor.<\/p>\n\n\n\n

Once a customer is convinced that the products are only minimally different that the more expensive name-brand counterparts, it can be difficult to win back that customer.<\/p>\n\n\n\n

The best defense is therefore a strong offense.<\/p>\n\n\n\n

Well financed national name brands can afford to use innovation and marketing to compete against private labels, and their survival depends upon it.<\/p>\n\n\n\n

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Brands Explore Creative Ways To Boost Customer Loyalty<\/a><\/p>\n<\/div><\/div>\n\n\n\n

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Take Another Look at Sustainability<\/a><\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

As inflation heats up, store-brand and private-label products are becoming more attractive to consumers who typically buy more expensive name-brand goods. Recent economic reports project real GDP growth will slow to 0.7 percent in 2023. Such a cloudy financial outlook … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":1675726,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[188,45],"tags":[105,17,76,39],"class_list":["post-1675719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-experience","category-specialty-retail-industry-trends","tag-customer-experience","tag-loyalty","tag-retail","tag-trends"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t