Prioritize Innovation

While consumers may be taking a closer look at budgeting their spending, budgeting does not imply only buying the basics. Consumers’ natural interest in what is new and on-trend or diet-specifi c will continue to be present. Further, the need for innovation across categories has been especially heightened as consumers express added interest in making their daily routines and homemade meals more exciting. While, for a retailer, focusing on innovation may seem counterintuitive in a time of economic downturn, innovation will enable them to satisfy consumers’ needs and drive Private Brand trial and loyalty. Key ways that Private Brands can prioritize innovation include:

Continue Planned Innovation: Private Brands must continue to focus on addressing consumer trends that were present before the pandemic. Consumer interest in plantbased products or healthy snacking, for example, has not waned; National Brands will continue to drive innovation in these categories. In Private Brand product innovation there are great opportunities for a retailer to differentiate its banner offering as well as drive store choice.

Drive Innovation in High Growth Categories: Retailers should also look at categories that expanded during the COVID-19 pandemic as opportunities for further innovation. Categories that relate to everyday cooking, as well as value-added produce and salty snacks, have experienced growth as consumer behavior has shifted from eating on-the-go to all home-cooked meals. Further, retailers should determine how Private Brands should play within these categories – such as becoming a 100% Private Brand solution – to focus investment and maximize impact.