A new survey suggests that supermarket industry see increasing private label sales as being a high priority for 2023. Key findings include:
• "83% of grocery executives said that private label should be a C-level priority," but "only 38% of grocery executives reported satisfaction with their current private label performance."
• "91% claimed to have a private label strategy and roadmap."
• "85% intend to increase the quantity of digital assets for private label in 2023, while 83% will expand their private brand digital marketing campaigns."
However, the survey also makes clear that if grocers are dissatisfied with how their private brands perform, they may only have themselves to blame:
• "97% of grocers deploy emails and 95% use banner ads for name brand marketing, but only 32% and 16%, respectively, do the same for private brands."
• "At 42%, digital circulars are the most widely used tactic for promoting private brands, but this, too ranks well behind deployment for name brands (86%)."
The survey was conducted by Grocery Doppio, which is described as "a free, independent source of grocery insights and data operated by next-generation industry insights firm Incisiv and digital commerce and fulfillment solutions provider, Wynshop."
- KC's View:
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This last point is a good one. If you want private label to perform better, you have to throw resources behind it.
The thing is, this is a smart strategy - private label, when properly done, can serve as a differentiating advantage.
