Are we about to head into the golden age of private-label brands? Gone are the days when store Brands are seen as just a cheaper alternative. In a new report, the positive perception of private-label products is increasing day by day. According to a recent survey, 42% of Millennials think private-label food is more innovative. There is no doubt that store private brands have seen explosive growth in recent years and a new Mintel report says that positive perceptions of private label products have taken hold among a large number of Millennials and other consumers. One interesting finding holds that 42% of Millennials aged between 18 to 36, say that food of store Private Label Brands is more innovative than national brands. Millennials are more likely to buy private-label brand products. Consumers are willing to look beyond big-name brands. Private label brands are no longer a cheap lesser option. They are becoming the preferred option and challenging the big brands to innovate. People have started trusting private-label brands.

                             The rise of private label brands during the pandemic and economic recession have equally put different responsibilities on the shoulder of retailers. Because the unpredictable supply of chains and high prices have created many headaches for retailers over the past few years. private label brands have the upper hand on national brands, therefore, there are some important tips that private-label brands should follow for maintaining their position. In this article, we will describe a brief history of private-label brands and some important key strategies that they should follow for competing for the national brands.

History of Private Label Brands:

                     Now let’s look at the brief history of private label brands. Before the upsurge of online marketplaces, retailers traditionally stocked their shelves by making deals with manufacturing giants like Procter and Gamble or Nestle. Those large consumer-goods amalgamation pushed out smaller brands, demanded high-class shelf space, and business for other benefits as part of their deals with big retailers like Walmart. Later on, Walmart took the opportunity to use the data it collected in its stores to make its private label brands.

Key Strategies for Private Label Brands:

                          To become successful in today’s market, private-label brands need to keep these strategies in mind. Otherwise, it would not be easy to compete with national brands.

• Reason For Introducing Brand:

                               First and foremost, the point for private label brands is that they should define the reason for introducing their brands to consumers. This will remove the hesitation of new consumers for buying these private label products.

• Low pricing: 

                                 Pricing is an essential part of the strategy for private-label brands. More consumers are seeking low-priced products during the period of recession. One recent study shared that among US adults, 89% have shifted to private label brands from national brands because of better prices. Furthermore, Mckinsey found that 45% of consumers say that low pricing is the primary reason for buying private-label products. Hence, pricing plays an essential role in the success of private-label brands. 

• Innovation:

                              In addition to this, keeping innovative new products according to the need of particular regions is the most important factor for the rise of private-label brands. National brands could not compete with private label brands during the pandemic because they failed to update themselves according to the needs of people. 

• Promotions:

                            Private label brands should introduce their products in promotions from time to time. This strategy encourages the new hesitant consumers to try private label products and after that, they become loyal customers of private label brands. Thus, promotions play an important role in the success of private-label brands.

• Time to Time Surveys:

                           Private-label brands should take time-to-time surveys to engage their consumers. These surveys will help retailers to modify themselves according to the needs of consumers. 

                             In a nutshell, due to the increasing number of consumers shifting towards private label brands, it has become necessary for private label brands to follow the essential points for fulfilling the demands of customers.