Private label products have become more trusted brands of today in Europe and continuous innovation will ensure they remain so, says Nielsen‘s analysts. In addition, as analysts pointed out, some private label products show a higher price than their branded equivalents. This is because of research in technology investments. “The future is co innovation, without a shadow of a doubt. And technology will be a key driver,” said the report.
This is as true for brands as it is for retailers and their private label ranges. A progressive brand is one that incorporates technology, a brand story, passion and customer and consumer engagement. So in terms of competing with private label innovation, brands should look at categories that have low private label penetration because consumers feel loyal to branded products.
Therefore the publication suggests that brands needed to look at categories where brands are still top, and learn from them. For example the brands which have worked hard to decommoditise their products, finally have become well-known and trusted. Competing with a private label product that may 30 or 40% cheaper, experts say, is all about making an emotional connection.
