In this episode of Velocity This Week, Christopher Durham brings the latest news in the world of retailer-owned brands / private brand /private label. He discusses the viral success of Walgreens’ gummy mango candy on TikTok, Target’s relaunch of their up&up brand with higher quality standards, Good Food Holdings’ introduction of their first companywide private brand, Macy’s launch of the State of Day restwear brand, and 7-Eleven’s new Valentine’s Day treats. Durham also shares information about upcoming events and invites retail speakers to join the Velocity stage.

Retailer-Owned Brands Take Center Stage: Unveiling Innovative Products and Engaging Customer Experiences

The retail landscape is brimming with innovation and customer engagement strategies, as exemplified by the recent updates and new offerings in Retailer-owned Brands. From TikTok-fueled sweet treat sensations to the reinvention of essential household products, retailers like Walgreens, Target, and 7-Eleven are capitalizing on their brands to differentiate and deliver value.

Key Takeaways:

Social Media Influence: Walgreens’ private brand gummy candy underscores the significant impact of social media platforms like TikTok on product popularity and sales.

Brand Revitalization: Target’s up&up brand relaunch demonstrates the importance of evolving private labels to meet new quality standards and customer preferences.

Innovative Offerings: Private brands are expanding into unique and differentiated product areas, evidenced by Good Food Holdings’ new coast foraging companies brand and Macy’s state of day rest wear collection.

Walgreens’ TikTok Triumph: A Sweet Spot for Private Label Candy

The Viral Effect

The explosive popularity of Walgreens’ Nice gummy Mango Peelable Candy on TikTok illustrates the potential for social media to catapult a private brand product to fame. With a seven-fold increase in sales, it’s clear that creative engagement on platforms like TikTok can drive significant consumer interest and demand.

“Content creators across the country are snatching up the dollar 79 treat to peel, eat, and review for their followers. The result will, of course, sticky fingers, sugar-fueled smiles, and millions of video impressions.”

Innovation as a Growth Lever

Walgreens decision to experiment with unconventional flavors and formats like mango peelable gummies reflects a strategic move to innovate within the crowded confectionery space. Their success not only highlights the need for private labels to continuously evolve but also shows the benefit of taking calculated risks with product development.

“We both thought, let’s shake things up a bit.” – Walgreens team on developing the Nice Candy brand.

Target’s Up&Up Brand: Elevating Everyday Essentials

A Strategy of Continuous Improvement

Target’s overhaul of up and up signifies a commitment to quality and customer satisfaction. With a 40% reformulation of existing products and an embrace of eco-conscious packaging, Target sets a precedent for private labels to continually align with modern consumer values.

“The Target team is adding hundreds of products to the already extensive up and up assortment…for a total of more than 2,000 everyday essential items.”

The Role of Customer Feedback

The retail giant’s meticulous attention to consumer input—a hallmark of its brand’s reinvention—underscores the essential role of customer-centricity in private label strategy.

“Our product teams combed through thousands of guest reviews to create new formulations, hundreds of new products, and thoughtful packaging to make up and up even better all while continuing to offer truly unbeatable value.”

Private Brand Expansion with Good Food Holdings & Macy’s

Unique Positioning in a Crowded Market

The launch of Good Food Holdings’ new Coast Foraging Companies brand, featuring items like empanadas and truffles, exemplifies how retailers are carving out niches within their private labels, attracting customers with distinctive and broadly appealing product lines.

“The initial products in the launch included empanadas and truffles…We’re not trying to create the most premium products in the world, but we are trying to have something that you may not find everywhere else.” – CEO Neil Stern

Embracing Restwear

Macy’s debut of State of Day, with its emphasis on rest wear, is indicative of an industry trend towards comfort and versatility—a response to evolving lifestyle needs. Their exhaustive customer research enables them to tailor offerings to the exacting standards of their clientele.

“State of Day helps women feel more comfortable and relaxed at home…The collection includes light, easy-to-layer pieces and soft pajamas.”

The importance of retailer-owned brands can’t be overstated, as they not only cater to consumer needs but also foster affinity and loyalty towards the store. The insights derived from the most recent exploits of Walgreens, Target, Good Food Holdings, and Macy’s underscore the importance of innovation, quality, customer feedback, and unique positioning in propelling private brands forward.

Retailers leveraging their brands are poised to redefine shopping experiences, forge stronger connections with consumers, and carve out distinctive market positions. As they continue to harness the power of social media, prioritize customer desires, and tap into emerging trends, these brands are likely to see an upward trajectory in relevance and profitability.