Retailers, if you’re not thinking about dog food, paper towels, supplements and cleaning products in your private brand portfolio, you could be leaving profits on the table.
The evolution of private brand perception across the store has shifted from them being “cheaper alternatives” to unique and meaningful solutions. With this earned trust, private brands have permission to continue driving innovation, with strong sales growth within traditionally national-brand-loyal categories like non-foods providing fertile ground for further development.
New insights from Daymon, which powers private brands for Advantage Solutions, show that many private brand non-food categories — everything from kibble to cleaning products to baby wipes — are experiencing year-over-year sales growth, with each outperforming their overall categories by unit growth.
“Overall, many non-foods categories outperform the rest of the store in private brand penetration — but that doesn’t mean that there still isn’t white space and more opportunity,” says Jonathan Finch, vice president of client services at Daymon.
Finch, who is slated to present Daymon’s findings this week at the Private Label Manufacturers Association (PLMA) Annual Meeting & Leadership Conference, urges retailers to take a 360-degree approach to their private brand programs, or risk being left behind by competitors.
Among the key insights that Finch plans to cover on stage:
- Private brands have been on the rise, both in dollar and unit share. After posting growth each of the past four years, they now comprise 20% of dollar share in the total marketplace, and 21.9% of unit share.
- Growth in key non-food categories is outpacing many of the overall product categories. For instance, while the overall dog food category has declined 0.3% in dollar sales, private brand dog food has posted 4.6% growth.
- Utilizing Daymon’s proprietary Global TrendWheel, a forecasting tool that identifies, defines and tracks the evolution of consumer behavior, Finch will highlight key trends that translate into consumer needs in the non-food space. These include health & wellness, sustainability, convenience and “Joyment” (the notion of focusing on products, services and experiences that bring shoppers happiness and satisfaction).
For those attending the PLMA Annual Meeting & Leadership Conference, “Opportunities in Non-Food Growth in Private Brands” will be presented by Daymon’s Jonathan Finch on Thursday, April 3 at 3 p.m. in the Paradise Ballroom South at the Mountain Shadows Resort in Scottsdale.
For more information on how Daymon can support your private brand plans, reach out to contact@daymon.com.
