The new report from Datamonitor, “TrendSights: Private Label Evolution” takes a look at its evolution which is marked by increasing sentiment towards the perceived quality of private labels, and how this relates to their branded counterparts. A key component behind this changing attitude is the shift in private brand focus from a budget proposition to one of value, which has in turn translated into an emphasis on on-trend innovation, taking the value concept to a different extreme.
Private labels are becoming destination brands: 50% of consumers say that the quality and range of products, and availability of PLs is the key factor in them deciding where to shop, creating an opportunity for retailers to differentiate themselves. This is only set to rise if the current rate of private label evolution and innovation continues.
Private labels now answer numerous consumer demands, and in some categories innovate ahead of brands, or offer niche products targeted at specific consumer needs. There is still room for Private labels to evolve further, however, particularly in categories currently seeing lower-than-average consumer sentiment.
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Key questions answered include:
- What is private label evolution? What is driving – and inhibiting – the development of Private labels?
- Do attitudes towards Private labels differ by sector? How important is value and image in each of the major FMCG sectors?
- What are retailers doing to highlight their Private label offerings, and is this only reflected in packaging innovations?