Private Label Brands Compete Harder than Ever

The rise of the private label brand during the recession is making for stiffer competition for brand name products.. Trends show that while many customers returned to buying their favorite brand names, other shoppers are content with private label and don’t plan on switching back…yet.

The increase of private label sales in supermarkets and drug stores is significant- an increase of about $1.6 billion dollars over the past 2 years, according to the 2014 American Pantry Study, conducted by Deloitte.  88% of shoppers said that they now perceive certain store brands to be of equal value to similar name brand products, due to the increase of quality in certain private label brands, such as Costco’s Kirkland and Walmart’s Equate. The price-conscious consumers have found they can substitute private label for brand items without noticing any major differences; however,  certain categories, such as coffee, beer and pet food, yield more brand loyalty than others, making them less price sensitive.

While CPG companies had to worry about other brands as competitors before, private labels have become a strong contender. Now more than ever, brands need to reconnect with the consumer to become an everyday item the consumer scours the store to buy.

CPG companies of all sizes are beginning to review their current market strategy and find new and innovative ways to reach consumers. Using today’s mobile technology for retail execution and consumer loyalty, brands are connecting with today’s shopper in a way private labels cannot.

With the holidays only a few months away, we’ll see which brands have been able to reconnect with the consumers and continue to separate themselves from the private label competition.



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Seth Nagle, Senior Marketing Manager at RW3 Technologies understands the power of innovation but also its limitations. Attending Salve Regina in New England, starting his career in Silicon Valley, and now living in Austin, Texas; Seth provides a unique tech perspective to a complex CPG and Retail Grocery Industry that is in constant disruption.

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