Stamford, Connecticut based private brand broker Daymon released its first-ever Private Brand Intelligence Report today, the Private Brand Intelligence Report provides a “State of the Industry” analysis on how Private Brands stack up against national brands based on proprietary survey data, category research and internal insights.
With 81% of shoppers now buying Private Brand products on every or almost every shopping trip, it’s no surprise that Private Brands are positioned to disrupt the industry. The Private Brand Intelligence report outlines what led to this moment and what is expected to come in the year ahead.
“Private brands have entered a renaissance period that has allowed them to become more differentiated than ever before,” said Jim Holbrook, CEO, Daymon. “We are seeing that retailers with distinctive, one-of-a-kind Private Brands will survive and thrive, while those with national brand equivalents will struggle as competitive pressures mount.”
The report reveals some interesting insights:
- A Benchmark for Businesses – Learn where brands and retailers stand among the competition by comparing industry averages and best-in-class examples with their current private brand offerings.
- A Reimagination of the Store– Understand the store of the future and how to meet the needs of the 59% of U.S. consumers seeking engagement when they shop, and the average consumer who now uses at least nine channels to shop every month.
- A Wellness Movement Recap– Get the scoop on the $3.7 trillion global wellness market. With 60% of consumers stating they would like to see Private Brands have more presence in fresh, this segment is only expected to grow from here.
- A Spotlight on Private Brands at Value Discounters– 65% of retailers saw at least a 10 percent increase in dollars lost to the value channel over the past year. Read about how Lidl, Aldi, and other discounters are becoming dominant forces that are breaking the mold.
- The 2018 Playbook– Refocus your attention on the 2018 predictions to get some ideas on how to nail down this year’s Private Brand strategy through the reignition of the primary shop, the direct-to-consumer trend, center store reinvention, and the digitization of retail.
The report also includes a look at:
Daymon’s 2018 Private Brand Shopper Study
More than 2,000 U.S. shoppers were surveyed to gauge consumer sentiment about Private Brands. The findings show an increase in the perception of Private Brands versus national brands, with 85 percent stating that they trust Private Brand products at least as much as national brands. But, this is not just proven anecdotally. Private Brand sales have increased by four percent or eight times more than national brand sales. To capitalize on this newfound reputation and to increase Private Brand purchases, coupons and in-store sampling should be considered, since consumers expressed these as their top two motivators for making purchases.
Lessons Learned from 2017
A year-end review of 2017 found that there was a 180-degree shift from imitation to differentiation – a welcome change given that up to 98 percent of national brand assortment is carried by competitors. Daymon’s proprietary Private Brand analysis across 50 retailers found that this was largely driven by unique products, price checking, customized promotion and consistent placement across stores. The modifications didn’t end there though. The past year also witnessed retailers addressing customers’ desires for enhanced shopping experiences through the launch of new concept stores and the race to digitize both on and offline.
Download the report: Private Brand Intelligence Report