Pricer’s Points: Private labels can be more powerful and profitable than classic brands, enabling richer experiences and faster growth | Peter Fisk
When I want to cook a great dinner at home, I head straight to Marks & Spencer’s food store. M&S’s Cook range of premium quality, organically farmed self-assembly dishes makes entertaining easy. Not only do they bring together all the ingredients, fresh and locally sourced, but there is an instore tasting kitchen and even a cafe where I can try a full meal if I have time.
For packaged goods, I always trust Waitrose, anything with their brand has to be good. Whether its the low-priced essentials, or the premium treats, they have everything I need and often with more variety and change too. Same with Trader Joes in USA, which is a great community store. Fabulously designed products, usually with a twist on conventional themes, and delivered with fantastic human and fun service.
Time to rethink the potential of private labels
“Private labels” are typically a retailer’s own branded version of popular products. They used to be seen as cheap and generic, sometimes as low-priced imitators of classic brands. That old mindset has changed.
- They can be more profitable. The ability to avoid comparison of prices with the same products in other retailers means less focus on price battles, and also price matching by consumers across stores.
- They are faster and easier to manage. There is more speed, control and flexibility, to get new ideas to market faster, to adapt pricing to changing situations, and learn quickly from consumer response.
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