Post-pandemic challenges of the private label: more local and more differentiated

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In this period, brands launched gourmet versions of their food products or adapted market fashion trends to their white brands (for example, organic and organic).

In short, the white label repositioned its situation in the market and the crisis derived from the pandemic will force it to do so again. In this sense, the analysis firm Mintel highlights that the end of the pandemic crisis will imply a certain economic instability, which private label distributors can take advantage of. "Post-pandemic times will create opportunities for retailers to generate new capabilities to differentiate their own brands from a competitive market," they point out in an analysis.

The crisis of a decade ago accelerated the weight of the private label in the market, the one of now could reinforce it. The private label faces challenges such as approaching the local market and offering more sustainable products.Click To Tweet

In Mintel's analysis, they point to four major trends that will underpin private label strategy in the post-pandemic world:

Amazon will set the pace

As Amazon becomes stronger in the grocery market, the more its private label range opens up and the more it positions them, online and offline, in the countries where which already have Amazon Fresh and Amazon Go stores.

Thus, the pull of Amazon brands could force retail chains to innovate much more, both inside and outside the network, and to improve their white-label strategy to connect with audiences.

Preference for what is local

Local is in fashion and consumers are focusing more on local products. They want more transparency from companies when it comes to sharing who has made their products, how and where, while they prefer to buy what is close by because they feel that they are thus supporting the local ecosystem.

This happens generally, but it also works for the white label market. These brands will also have to demonstrate how they are enriching local economies and connect with the values ​​of the place where they are sold.

Luxury and experiences

If a few years ago the big change was the appearance of gourmet items in private labels, now the strategy of these brands will have to work on new habits. Consumers are dining out more at home, and they do so by seeking more upscale, up-close experiences.

For this reason, many restaurant chains are already launching their products to make at home (from breakfast kits to ready-to-eat or frozen products) linked to their brands. The own brands of retail chains must be able to get their share of this cake.

Sustainability

The private label must also respond to the growing sustainability needs of consumers. In this sense, Mintel points out that this type of action not only helps to position the white label but also to create trust with those who sell it. A German supermarket chain, Rewe, has turned its eggs into a way of confirming that they respect animals, thus improving their potential brand perception.

Source: Pure Marketing

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