Inflation and number of private labeling in all time high

Over the years, big brands have held a stronger position in retail than their own brands. For example, the majority of consumers were willing to pay more for Coca-Cola products than for generics.However, over the past decade, consumer attitudes towards their consumption habits have changed. These days, as inflation continues to push retail prices higher, many households can no longer afford all the branded products they used to buy at the grocery store, and are instead turning to private label brands. Change is accelerating.

What can be said for sure is that retailers are feeling the pressure as sales of consumer goods from big brands continue to decline. To combat this, they are investing in private labels to boost sales. And the investment is well received by consumers.

Private label annual growth is impressive, to say the least. This rapid growth can be attributed to several factors, but perhaps most important is the continued rise in the cost of living, creating a situation where families need to save money on food.

This significant increase is also due to private label quality. What began as a way for retailers to offer cheaper alternatives to branded products is now a way to offer quality products at lower prices. considered equivalent to branded products in terms of

Spinneys and Waitrose, in particular, are known for enlisting high-end designers to create stylish and trendy private labels. This strategy has succeeded in attracting a wider range of buyers as private labels are no longer seen as cheap and inferior.

The rise of private labels is also fueled by growing interest in sustainability. As private labels continue to play a central role, retailers must use clearance data to test different packaging, store fixtures, and private label marketing strategies. Submarine Insights allows retailers to test strategies and see how private labels perform before making major investments. This can be the key to making your store stand out from the rest and generating more sales.

Benefits of investing in private label brands

  • Private labels build loyalty
  • Retailers can keep sales up by investing in their own brands
  • Including private label brands may help overall category sales

As private brands continue to take center stage retailers will have to test out different packaging, store setups, and marketing strategies for private label brands using the sell out data. Submarine Insights allows retailers to test the waters on strategy and see how private label brands would perform before making any deep investments. This could be a massive key in differentiating your store from the rest and bringing in more sales. Who knows? Maybe your private label brands can become the next big thing.