In-store “experiences” may be a good way for retailers to fight direct-to-consumer competitors, but having unique, higher-quality store brands can be equally as compelling—and save a lot of money on pricey installations. In his latest piece for Store Brands magazine, CBX partner Todd Maute explains how retailers can use store brands as a strategy to “attract attention, differentiate themselves, and minimize the need to make large capital expenditures.”
And this goes beyond category or channel. “Offering higher-quality, unique, differentiated, and compellingly branded private label products gives you a reason to focus on the retailer, not the channel,” Maute says. It’s why retailers like Best Buy, whom you wouldn’t expect to have good store brands, have found success during this retail apocalypse.
Their unique and competitively priced offerings are able to win over loyalty of consumers—and it’s getting a little easier now that younger consumers are less concerned about national “name” brands.
Another perk: Beside their faster speed to market over CPG companies, Maute points out, retailers can also control merchandising in their stores. “That means they can collaborate with manufacturing, branding, and design partners to put their expertly branded and packaged products front-and-center at shelf.”
And, although we will see more and more owned brands in traditional retailers, they need to ensure they’re always connected to their original vision.
“Elasticity has limits,” says Maute. “Stretch and brand too far, and it will break.”
Read the full article in Store Brands magazine.
Photo courtesy of Store Brands magazine.
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