Retailers need to adapt their strategy to the post-pandemic environment and redefine the role that private brands have to play, according to a report by Daymon, which recently signed a collaboration with Robinson Young to shake up the private brand offering in the UK.
The report notes that, following the initial surge in UK stockpiling, sales were driven by three key factors: fear of missing out (FOMO – for example, toilet paper, frozen foods); daily needs (cooking products and confectionery); and new priorities (personal care, cleaning products, health/hygiene products).
Unprecedented demand and resulting availability issues have caused many challenges, including questions over the origin of certain products. It has also resulted in changes to retailer-supplier relationships, with alternative sources investigated – some products that are usually produced abroad are having to be sourced locally to ‘plug the gap’ in supply.
The report adds that consumers have had to become more promiscuous, shopping at different stores to get what they need, with local convenience being a big winner. Indeed, smaller stores are thriving as people shop closer to their homes (Kantar).
“The consumer shift to more strategic spending habits is here to last, with a clear opportunity for retailers to utilise private brands as a key tool to engage with their customer base and expand their value proposition to their shoppers,” says the report.
Private brand is already well perceived. When UK consumers were asked why they bought more private brands, 68% said ‘better value for money’, 53% cited ‘improved quality’ and 41% said ‘increased variety’.
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