What are the top 3 challenges Private Labels face in the current climate?

22nd January 2020
From Christophe Vanackère, CEO at Trace One

Consumers always expect more. Own brand has raised the bar on quality and now retailers need to be clearer than ever on consumer requirements and expectations if they want to keep private label fresh and invigorating. Retailers have to understand how consumers work, how they live, how they shop. Innovation, design and experience have to continually evolve and improve.

It’s tough to maintain the pace of innovation. Retailers need to act on consumer insights faster and better than ever before. For own brand to stand out from the milieu of branded products, insight, execution, design and consumer experience on a product-by-product basis has to be better. New alliances and greater open innovation initiatives are the next wave in terms of maintaining the pace.

National brands are reacting to own brand. A and B brands are reformulating, repackaging and increasing their marketing spend. They’re also launching or relaunching tertiary brands, which the consumer doesn’t typically walk into the store to buy. But if the product on promotion is at a comparable price or better than own brand, consumers look at it as a value option. National brands are taking the own brand challenge seriously and they are really going at them in a toe-to-toe fashion.

As private label continues to secure a stronghold in the retail marketplace, retailers and their supplier partners must work together to deliver an efficient, cost-effective program. An automated, SaaS PLM solution can help the partner groups collaborate more effectively. A collaborative culture with business partners will give Private Labels the chance to pioneer new processes and be at the forefront of innovative.

Discover how Trace One can help you spark innovation with our One Plaftorm

 

 

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