Innovation is hard to define and even harder to achieve, but it is central to the growth of Retail Brands.

This point was emphasized during the Velocity Institute (RBI) Innovation Summit. Speakers relayed strategies to meet new customer needs and prioritize differentiation.

Executives from companies including Whole Foods Market, Walgreens, CVS Health and Kroger spoke at the online event, which drew some 700+ registrants across 37 countries.

Here are ten key points from Summit speakers.

1. Redefine Innovation: Innovation has long been associated with products, but there are other important areas for innovation, speakers said. “I try to broaden the innovation discussion beyond just products to include aspects such as process, technology, packaging and convenience,” said Tom Hermes, Vice President, Sourcing and Product Development, Whole Foods.
2. Identify Unmet Needs: The future Retail Brands is strong if retailers tap into the deeper needs of customers, said Walgreens’ Andrea Collaro, Senior Director of Brand Management/Product Development, Private Label Health & Wellness. “Private Brand has the potential to grow year over year, whether in healthcare or other areas,” she said. “It’s important to develop products that are customer-led and focused on unmet needs.”
3. Emphasize Brand Power: Retail Brands have a right to win with customers, a point that should motivate retailers to innovate. “Retail brands need to escape the trap of coming in second place against other brands,” said Christopher Durham, President of the newly launched Velocity Institute. “Retail brands should not be also-rans.”
4. Prepare for ‘Day Two’: It’s important to recognize that the middle of an innovation journey can be a scary time, said Brenda Lord, Vice President of Private Brands & Quality Assurance, CVS Health. She pointed to the ‘Day 2’ concept from author and professor Brené Brown, which relates to a metaphorical three-day journey. “Day 2 is the middle and point of no return, before you can see where you’re headed,” Lord said. “We know what we want to solve for customers, but there’s still a lot of work ahead, and Day 2 defines that.”
5. Dedicated Roles: A big organizational challenge is that if everyone is supposed to be innovating, then probably no one is innovating, said Natalie Taake, Senior Innovation Manager, Kroger. “You need people focused on innovation in dedicated ways,” she said. “You need to carve out time for them to be working on innovation.”
6. Get Shopper-Centric: The traditional practice of category management is less relevant today, especially on the Private Brands side, according to a presentation by Doug Baker, Vice President, FMI, and Jim Wisner, President, Wisner Marketing. They introduced an innovative “shopper-centric” approach that Wisner said “puts Private Brands at the core of the shopper experience.”
7. Stock Helium: It’s hard to be innovative in the face of supply chain challenges. The retailer Party City was faced with a helium shortage, which isn’t a good thing for a business that sells a lot of balloons. The retailer took an innovative approach by purchasing helium mines, said Susan Sanderson-Briggs, SVP, Brand and Marketing. “We’ll never run out of helium again,” she observed.
8. Conquer Fatigue: The antidote to meal fatigue is innovative meal ideas. That is a driving force behind the meal programs at Canada’s Longo’s supermarkets, said Jenny Longo, Senior Director Private Brands, Culinary Innovation and Central Kitchen. “Guests have been coming in for new solutions to avoid becoming bored with their meals,” she said.
9. Lead With Differentiation: When you’re the new guy on the block, you need to be different — a key principle for Joe Coulombe when he founded Trader Joe’s in the 1960s. Author Patty Civallari, who has co-written a biography about Coulombe, described the retailer’s early innovation strategies. “Joe loved the idea of sending buyers around the world to come back with unique items,” she said.
10. Expand Consumer Profiles: It’s important for Private Brand leaders to dig deep into consumer profiles — from multicultural to multigenerational, said Michael Taylor, President, Daymon. “We need to avoid a one-size-fits-all perspective,” he said. “Private Brands really have the opportunity to meet different consumer needs.”

The Summit’s sessions can now be viewed on-demand. The presentations provide a wide range of important perspectives about innovation in Retail Brands.

Still ahead is the RBI Sustainability Summit, which will be held online on December 8 and 9 of this year.