Daymon released the latest edition of its annual Private Brand Intelligence Report today, delivering an inside look into the future of Private Brands, and the emerging strategies that will be essential for retailers in getting ahead and positioning themselves for long-term sustainable growth, especially in the wake of unprecedented challenges. The report features worldwide insights and thought leadership from Daymon’s team of Private Brand experts, who utilized proprietary research, custom analyses, consumer surveys and global intelligence to provide a perspective on the industry.

Top-level findings from the report are summarized below:

The Importance of Private Brand Innovation

While innovation may have become a lower priority versus the immediate challenges presented in today’s volatile retail environment, consumer pressure to deliver is at an all-time high. Demand for innovation has sped up, with consumers around the world looking for retailers to provide new products and services that fit their changing priorities and lifestyles. Consumers are becoming brand agnostic with 70% of U.S. shoppers having purchased a new or different brand than they had prior to the pandemic. Additionally, within the U.S., 89% of consumers now trust Private Brands just as much or more than National Brands. Private Brands must refocus on innovation to capitalize on this recent increase in both trial and trust.

When deciding how to update your innovation strategies, Daymon recommends following three Private Brand innovation principles:

• Focus on the consumer
• Deliver across the portfolio
• Set appropriate KPIs

Ultimately, in order to meet changing consumer expectations and maintain brand and banner relevancy in the long term, retailers must rejuvenate their Private Brand innovation strategies now or risk falling behind the competition.

Omnichannel: Positioning Private Brands to Win

While the term omnichannel has been a buzzword within the retail industry for more than a decade, the world saw how the e-commerce and digital landscape quickly accelerated as a result of the pandemic. As global consumer needs changed practically overnight, retailers were forced to shift gears and adapt to the evolving purchasing behaviors of the new omnichannel shopper. For example, over a third of US consumers now utilize search to help guide them within a product category or when looking for a specific brand. Rather than online shopping replacing traditional retail, it has become complementary, and Private Brands must be equally represented on the physical and digital shelf. Private Brands must ensure that not only are all categories represented and available for e-commerce purchase, but also that they’re optimized within search and easily found and displayed within the first two rows.

When developing a holistic Private Brand omnichannel experience, Daymon recommends strategies that encompass the following elements:

• Merchandising
• Product information
• Package design
• Marketing

To compete with National Brands and deliver upon customer expectations, retailers must establish a clearly defined Private Brand omnichannel strategy that leads with one consistent voice across omnichannel platforms, clearly communicates the Private Brand value proposition, and integrates digitally across merchandising, product information, package design and marketing all while taking into consideration how these elements connect.

Addressing Supply Chain Challenges

The pandemic shed light on the fragility of the global supply chain, forcing retailers to examine the interdependency of the many aspects of supply chain management and rethink their broader strategies. Industries across the retail landscape are still grappling with challenges across the board, from labor shortages and closed factories to transportation bottlenecks and rising fuel prices.

Private Brand programs have certainly felt the impact of these challenges and have had to shift focus to solve for these immediate issues; however, retailers must also be proactive in managing their supply chain and Private Brand program strategies across three critical levers to prepare for future consumer needs as well:

• Supplier networks
• Pricing
• Marketing

While there is not one solve for remedying the cracks in the global supply chain, there are key learnings retailers can take from current challenges to be proactive in managing their supply chain and Private Brand program strategies. Mending the foundation of the supply chain with these considerations at the center is the best defense to whatever may come your way, protecting not only your supply chain but the future of your Private Brand programs.