Improved positioning of private labels is paying off

These past couple of years, the global trend of retailers improving the positioning of their private label has really taken off. By focusing on an appealing price-quality ratio, clear communication and smart innovation, an increasing number of consumers now know where to find these private labels. These are no longer seen as a B-choice, but as a similar and sometimes even better option than well-known premium brands.

Not only the price, but the quality is important too

Consumers are always on the lookout for a bargain. Even more so in times of crisis, like the current pandemic. But just presenting a low(er) price will not get you very far. The quality of the products should have the same high standard as premium brands. Only then can you encourage consumers to keep purchasing private labels and not go back to familiar premium products.

Premium products available to a wider audience

In the past, private labels mostly tried to match premium brands. But today, they often outperform the pricier brands. The quality of private labels is rapidly improving. Therefore, premium products are more easily available to a wider audience. But how do you as a retailer, communicate that your private label reflects premium quality?

Clear communication through marketing and appealing packaging

Through using a clever marketing strategy and beautiful packaging, for example. A clever design and appealing materials reflect high quality. Add interesting information and inspiration, to seduce consumers to keep coming back for more.

During their shopping trip, consumers can also be encouraged to purchase private labels. Through strategic placement of these products, for example: either on their way to the checkout or at eye level on the shelves. Products of a lesser quality are usually stacked on the lower shelves, so you have to bend your knees to reach these. Product of a slightly better quality are placed just above those or on the top shelves. Only the best products can be found at eye level: easy to spot and to take home.

Retailers are presenting themselves through innovative products

Next to offering private label products which equal premium products, an increasing number of retailers also introduces brand new product lines. Through this, they can communicate what they stand for as well as differentiate themselves from their competition. Every retailer uses its own strategy: one focuses on great taste, while the other goes for a healthy lifestyle. Albert Heijn has set an objective for 2022, that at least 51 percent of the revenue made from its private label should come from healthier products.

With its knowledge and experience, the fruit and vegetable sector can help retailers to grow. By sitting at the table together and discussing the options, not only retailers will benefit, but their producers and suppliers too. Through joining forces now, we can present even more appealing products in the future. Ones that consumers simply cannot ignore.

Growers United / Prominent believes that we are stronger together and gladly shares its knowledge and experience. Curious to know more? Do not hesitate to get in touch with Wim van den Berg of Growers United / Prominent: w.vandenberg@growersunited.nl of +31 (0)6 5756 4346.

Prominent is a brand of Growers United UA. This organisation is responsible for the sales, marketing and quality control of the product.