Fortunately, many 2022 market factors, including digital collaboration, sustainability, and price-consciousness, offer opportunities for private labels to emerge as profitable growth engines that allow retailers to grow their market share.[1] Satisfying consumers’ needs with remarkable, exclusive products and effective processes allows companies to grow their top line and deepen loyalty.
These five best practices can help retailers and brands strengthen their private label offerings this year.
Staying attuned to consumers’ shifting trends and lifestyles helps retailers and manufacturers collaborate effectively to develop timely, in-demand private labels.
For instance, rising inflation drives more consumers to affordable products, inspiring Walmart to expand its private label wine offerings and Aldi’s $10 Cabernet Sauvignon won a Product of the Year USA award.[2][3] Since more consumers still work from home, Target launched a new home organization private label.[4] In Germany, REWE launched vegan sushi as demand soars for healthy food options.[5]
To keep their assortments distinct and competitive, retailers source trendy products from reliable manufacturers. That’s why more retailers and manufacturers are turning to online retail networks to discover innovative products and potential business partners.
Also, global supply chain disruption has inspired more retailers to decrease the risk of bottlenecks and product shortages by sourcing from a roster of suppliers, including local players. Italian retailer Conad sources from local suppliers, including its partner for an award-winning private label pistachio spread, to align with growing consumer desire to “buy local“.[6]
To adapt to consumer trends faster, more private label teams of retailers and manufacturers, now collaborate using a single source of all their private label information. Using a centralized, online hub – rather than multiple silos of communication tools, like email, spreadsheets, Slack and Google documents – streamlines private label processes and boosts efficiency as all industries migrate online. Amid The Great Resignation, using a digital hub for all private label communications also protects companies by promoting business continuity even as employee turnover rates rise.
Efficient processes are vital to help companies get to market faster and address underserved consumer needs. Private label products that reflect timely consumer trends, including antioxidant-rich elderberry vitamin water developed by Aldi Ireland for consumers who want to protect their immunity and apple juice developed by Rewe that uses production methods that protect the declining bee population.[7]
One way retail companies can keep consumers coming back is by ensuring consistent quality across their private label product lines. Supplier management helps retailers ensure operational excellence by evaluating manufacturers’ performance, credentials and certifications. More retailers also proactively conduct supplier audits and internal product audits for end-to-end quality assurance to maximize consumer safety and reduce risk.
Quality is also trendy. During the pandemic, more consumers seek ways to pamper themselves by investing in quality goods. Beyond decadent gourmet indulgences, more consumers are investing in upscale skincare. In Portugal, retailer Pingo Doce offers premium private label face cream that protects skin against photoaging caused by light emitted by computers and smartphones, as we spend more time working, learning and playing in front of screens.
As conscious consumerism grows in influence, more retailers will differentiate their private labels with environmental, social and governance leadership to demonstrate integrity and purpose.
For instance, some retailers are offering healthier food options by reformulating their private label recipes with less sugar, such as iced teas, lemonades, cappuccino mixes and cocoa mixes.[8] UK grocer Waitrose launched private label coffee pods made from bio-sourced materials, which can be composted at home, reducing plastic waste.[9] Also, Finnish retailer Kesko launched sustainable cleaning products with 99.9% of the ingredients coming from natural sources and the bottles are produced from recycled plastic.[10]
Focusing on consumer demand, and improving private label efficiency and agility can help your company thrive this year. To support retailers and manufacturers as they apply these best practices, Trace One offers digital tools for successful private label collaborations. Learn how Trace One solutions, including product lifecycle management, product sourcing and quality management, can help you ignite your private label sales this year.
[1] Howland, Daphne, Ben Unglesbee, Cara Salpini, Kaarin Vembar, Caroline Jansen and Maria Monteros. 10 retail trends to watch in 2022. Retail Dive. January 4, 2021.
[2] Douglas Moran, Catherine. Walmart introduces new premium private label wines. Grocery Dive. July 20, 2021.
[3] Applebaum, Michael. Wine report: Retailers uncork big profits with private label wine. Store Brands. February 10, 2021.
[4] Thompson, Courtney. Target just launched its first storage and home organization collection, Brightroom — and it’s fantastic. CNN. January 5, 2022.
[5] European Private Label Awards 2021 – Winners Announced! European Supermarket Magazine. March 19, 2021.
[6] European Private Label Awards 2021 – Winners Announced! European Supermarket Magazine. March 19, 2021.
[7] Presenting this Year's Retail Winners. PLMA. 2021.
[8] Russell, Zachary. Sugar alternative introduced for private label c-store, foodservice. Store Brands. October 13, 2021.
[9] Jenkins, Bethan Rose. Waitrose launches first supermarket own-brand home compostable coffee pod range – and they’re all Fairtrade. Good Housekeeping. March 30, 2021.
[10] European Private Label Awards 2021 – Winners Announced! European Supermarket Magazine. March 19, 2021.