Unlocking total spending
To put it simply: The debate is over—consumers around the world are sold on private labels. As retailers’ investments in improving private labels paid off, private label sales reached new heights. In a recent NIQ survey of online consumers in 25 countries, most surveyed respondents agreed private labels are both good value for the money (69%) and good alternatives to name brands (68%).
Recently, however, while share of sales has risen 1.4 points globally, growth is slowing in all regions. Meanwhile, global brands are growing momentum. In fact, the top 10 global brands are now outpacing private label sales growth versus a year ago.
These trends don’t have to result in growing competition—or a race to the bottom. Changes in consumer mindset and generational traits are making a win-win solution possible. The keys to the future lie in unlocking total category and generational spending. The most efficient and fruitful path forward is for retailers and manufacturers to collaborate, with dual resources, symbiotic opportunities, and an eye to harmonious growth.
This report reveals what’s driving change in consumer mindsets.
We also dig deep into the symbiotic dynamics making collaboration possible, and we conclude with identifying specific opportunities for retailers and manufacturers. Below is a snapshot of selected highlights from the report.
4: The road to mutual success
Today's omnichannel consumers are eager to find the products they seek wherever they shop. The omnichannel universe has expanded into so many tangents of opportunity, and consumers are learning about, interacting with, and shopping for products in many physical and digital ways all at once. With that in mind, we encounter what might be a perfect (and powerfully rising) platform to enable such omnichannel collaboration and interaction with consumers: retail media.
If you haven’t already heard of them, retail media networks, or RMNs, are advertising platforms that operate within an e-commerce environment. They provide brands with opportunities to showcase their products to highly targeted audiences—directly on the platforms where consumers make their purchasing decisions. Those that can harness their presence on RMNs stand to gain the most.
RMNs
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a “Win-Win-Win” for all
For retailers
Maximize ad revenue and category sales
- Higher ad revenue from both name brands and private labels
- Higher total category sales enabled by strategic ad placements
- Heightened consumer loyalty driven by relevant, personalized ads
For brands
Precision targeting and enhanced positioning
- Storytelling and better RMN ad placements to strengthen premium positioning
- Access to new data for targeting consumers granularly
- Foster coexistence with private labels for category growth—without direct competition
For private labels
Maximize ad revenue and category sales
- Heightened discoverability and credibility fostered by (brand-funded) RMN co-promotions
- Enhanced path to targeting value-driven shoppers with minimal marketing spend
- Exposure to the same set of shopper segments being actively engaged by name brands
There’s never been a better time for organizations to rally together to find ways to grow the overall size of prize with consumers.
Instead of struggling alone to survive, work collectively to find harmony on—and beyond—the shelf. Our report concludes with specific guidelines for retailers and manufacturers to highlight what matters most—and what to do next.
