The following is the next in a series of guest posts from the latest issue of Global Retail Brands and this is my contribution to the magazine. Throughout the week we will feature one article a day from the new publication – please take a few minutes and click-through to the site – read the entire article and see what the rest of the world is up to.
Innovation and Own Brand
By / James Lucas, Executive Vice President, Global Insights and Strategy SGK
Innovations driven by both retailers and consumers are ensuring that private label has a healthy future in stores across the globe. The last year has witnessed a great deal of change in the private label marketplace. We will focus on two major trends in own-brand innovation:
- Rise of customer participation and endorsement
- Evolution of the three-tier own brand model
Customer Participation and Endorsement >>
Retailers have responded to today’s savvy, expectant, active and empowered shopper by engaging them throughout the development process. Retailers are finding that the process they go through to get their shoppers to endorse a product instills trust and ensures high quality. Consumers’ newfound empowerment means they want to be actively involved in the decision-making process. Social media is the preferred forum in which shoppers are willing to engage retailers about their brands. While this trend is in its infancy and primarily taking place in Europe, there seems to be a great deal of opportunity, especially in North America.
Consumer panels or communities allow a retailer to be more democratic and inclusive while providing the opportunity to create its own endorsement. Carrefour’s Panel, which comprises 15,000 European households, launched in September 2011; the panel evaluated more than 5,000 products by the end of 2012. Social engagement via Carrefour’s Facebook page, “Boite a Idees Porduits,” garnered 20,000 product recommendations in the first month!