Price Wars—The ONLY Way to Compete with Store Brands
Today’s market is heavily saturated by brands. Talk about makeup, skincare, baby, fitness, or food products— every single product is competing, and it’s mainly based on the pricing. Even more, store brands or private retail labels have entered the market, and now, like other brands, retailers’ private labels are also competing with you.
What Works and What Doesn’t
Many grocery chains are adding options to their store brands or private level because they have high margins, as more than half of the money directly goes into their pockets. The growing inflation rates have led 1 in 3 people to buy more store brands.
Day by day, retailers are diversifying their product options and increasing quality. Most of the areas and retailers try to put their products on specific areas and term them as “locked and low.”
DailyHive.com reports that Loblaws Canada has introduced hundreds of President’s Choice products and No Name products. Since 2020, Sobeys’ parent company, Empire, has also added over 1,000 products under its Compliments brand. Shoppers Drug Mart added 40 new products to its Quo beauty line, while Circle K and Couche-Tard also followed in the same footsteps.
What is Your Value and Availability?
It’s clear that your brand is not the cheapest anymore because private-label brands are already flooding the market. This means that there is no reason you must be competing on discount offers and pricing points.
So, how can you ensure your brand is all set to compete with store brands?
- Restocking matters
Restocking specific items/items can take up to days, followed by delivery and stocking. Inaccurate and non-timely predictions can also cause problems in the process. However, it is important to restock while keeping seasonal considerations and product demands in mind.
- Placement matters
If your brand deals in items like perfumes or body sprays, it’s likely that people would want to try them. Consider placing them without the glass or along with some testers. This will increase customers’ trust in your brand, knowing that now they have the ability to try the product before purchasing. Strategic placement, like pop-up displays on specific locations and entry points, can also make a huge difference in visibility.
- Everything matters!
Customer satisfaction and value proposition are some crucial components brands need to prioritize. For example, specific deals for holidays or rewards incentives during back-to-school deals can provide compelling opportunities for customers to try your product. This becomes even more impactful when coupled with sufficient stock in case the demand surges. The sales potential of each product can vary according to the nature of the product. Leveraging unique selling propositions on top of excellent customer service can make it easier for customers to choose your brand.
Do you have a product that you promote and ensure inventory management and accurate placement? Reach out to us for a free consultation. Call 1 877 421 5081 or visit our website today.
« Back to Blog