Private label lines are beginning to lead in their own right, but many retailers still need to be bolder and more creative, private label veteran Todd Maute advises in new column

New York, N.Y. – After decades of responding to rather than shaping top trends in consumer packaged goods (CPG), private brands are positioned to lead on multiple fronts, asserts Todd Maute, a Partner at brand strategy and design agency CBX, in a new column for Store Brands magazine.

“If you take a step back and consider some of the macro trends in the marketplace today,” Maute writes in the Aug. 30 column, “it’s clear that the world of store brands is on the cusp of a paradigm shift.”

To illustrate, Maute cites:
· the fast and vibrant trajectory of private label brands in a variety of sectors;

· the growing influence of younger shoppers who are agnostic about the distinction between national and store brands; and

· the ever-increasing diversity and innovation of today’s manufacturing supply chains.

In the “Viewpoint” column (“Store brands taking the lead. Now they need to own it”), Maute points to research showing impressive growth in store-brand sales by retailers, including major U.S. grocers.

But now that private label is positioned for higher performance, he says, leaders in the field should insist on continued innovation. “For decades, store brands were about following the nationals,” Maute writes. “Now is the time to look within and ferret out any remnants of that old mentality.”

Companies need to make an across-the-board commitment to best-in-class store brands that are designed—and supported—to lead, not follow, Maute argues.

“For retailers, that means regarding suppliers as collaborative partners, as opposed to seeing them as vehicles for improving price perception,” he writes. “It’s also critical that the priorities, strategic thinking and resource allocations for retailers’ disparate teams be aligned with the master brand strategy—the overarching purpose of what you are trying to do as a retailer.”

Despite the significant gains made by store brands, Maute adds, many retailers still have a long way to go before they can spark the same kind of excitement as award-winning lines by the likes of Trader Joe’s, Wegmans, H-E-B and Costco Wholesale. Stragglers should act fast to capitalize on today’s opportunities, he warns.

“The industry is evolving faster than ever, so there is the need for speed,” Maute concludes. “Those that commit to innovation and strong branding stand to capture the spoils of the new paradigm.”

The full column is available at: https://storebrands.com/viewpoint-store-brands-taking-lead-now-they-need-own-it