Store Brands Aren’t Just about Price. The Harvard Business Review

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This week the Harvard Business Review blog posted a story by contributor Eddie Yoon a Principal with The Cambridge Group. The post presents an interesting look at the traditional notion of price, value and private brand.

EddieYoon_greyscale-Custom-e1398735303597Store Brands Aren’t Just about Price

More and more, I hear different twists of the same question from clients: Can emotion still influence buying behavior in world where the mobile internet, with real-time access to product reviews and price comparisons, is training consumers to shop purely on rational facts?

On the surface, it looks like rational benefits are winning. According to Nielsen, in the last three years leading national brands in grocery stores, which probably command the lion’s share of traditional “emotive” advertising dollars, grew sales 0.7%. Meanwhile, private label, or store brands, grew 8.8%. That’s scary data, if you are one of the big brands who rely on emotion to drive the business

The core assumption here is that private label sales are only about price. To test this, we decided to take a look to see if private label superconsumers — consumers who buy a lot of private label and have strong emotions about private label — actually existed. It turned out they do exist, but they were different, more prevalent, and more important than what we expected.

Read the entire article.

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Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.