In this episode of the Shopper Marketing Minute, I explore the impact private label brands are having on national CPG brands. For full transcript see below:
Private label brands have benefited greatly from the early, panic buying phase of COVID seeing sales jump by double digits — outpacing national brands in dollar and unit sales. So, for me, the question is…can private label brands sustain its growth becoming an even bigger threat to national brands as we move forward?
In my opinion YES…for 3 reasons:
- Price — private label brands offer shoppers VALUE which is becoming increasingly important as household incomes decline due to high unemployment rate
- Quality – long gone are the days private label products were viewed as low-quality knock-offs of national brands. Now – many store brands are more highly regarded than their national brand counterparts.
- Investment – retailers are investing marketing dollars to promote their private label brands and build loyalty….and it’s working. Research shows store brands are a key reason many shoppers choose a particular retailer to shop at.
Have an opinion please leave a comment.
Thanks for watching.
