The door has opened wider.
The Private Brands industry has a unique opportunity to build on unprecedented levels of consumer trial during the pandemic, said speakers during a My Private Brand webinar.
Forced to try store brands in the face of out of stocks, consumers discovered surprisingly high levels of quality and innovation. Now it’s time for the industry to accelerate the momentum with new strategies, they said.
“The challenge is, you’ve got them, can you keep them?” said Wesley Bean, Senior Vice President of the Global Retail Network for Catalina USA.
“How do you have that one on one conversation with the customer, not necessarily just item and price and promotion, but how do you personalize your marketing to the needs of that individual shopper?” he said.
Aimee Becker, Senior Vice President, Strategic Advisory, Daymon, said, “The time is now for Private Brands. It’s so exciting to see where we are as we think about what we can be doing next, and most importantly, how we can deliver for the shoppers that need us most.”
Data Underscores Growing Purchases
According to a Catalina analysis, Some 42 million “new shoppers” bought retailer Private Brands in the five weeks ended April 10. Those shoppers had not bought retailer brand items in the period just before the pandemic – the 13-week stretch ended February 29. Moreover, 31% of these new shoppers soon became repeat purchasers of Private Brands.
Bean cited the case of natural and organic. Consumers who typically buy those categories showed willingness to switch from their regular brands to Private Brands during the early period of the crisis, and eventually made repeat purchases. This information should lead retailers to explore how to further succeed with lifestyle-focused engagement, he said.
Industry Told to Prioritize Innovation
Becker urged Private Brand marketers to prioritize innovation, enhance solutions, deliver inspiration, educate shoppers beyond price, and leverage e-commerce.
She said Private Brands were already positioned for greater success prior to the pandemic, and those expectations are now higher because of the recent period of trial and the current recessionary environment.
“We forecast that Private Brands will hit about 22% penetration collectively by 2025, and this is probably a very conservative number,” she said.
The My Private Brand webinar is now available on-demand. Bean and Daymon President Michael Taylor will be speakers at Velocity Global, the virtual conference from My Private Brand, set for August. Christopher Durham, president of My Private Brand, outlined the unique offerings of Velocity Global during the recent webinar.
VELOCITY GLOBAL ON DEMAND!
All presentations from this year’s Velocity Global are now available on demand. If you could not attend, tickets are still available for purchase to gain access to this compelling content.