By Doug Baker, Vice President, Industry Relations - Private Brands, Technology, Food Marketing Institute
Last week I attended and spoke at My Private Brand’s Velocity Conference in Charlotte, North Carolina. The experience reminded me of a blog post I authored just last fall talking about how the FMI Private Brand Leadership Council is bringing about change within private brands—from what we would consider a simple transition in nomenclature, from private label to private brand, to the more complex transition of changing how trading partners collaborate to drive more innovation.
In every business process there are several imperatives that move the needle in a positive direction. At the conference this week, I walked attendees through five key imperatives that have been identified through our private brand research supported by the FMI Private Brand Leadership Council’s guidance. Here they are:
1. Stay Ahead of Key Trends with Data
With a more aware and active consumer, the breadth of trend metrics a brand owner must consider continues to grow.
2. Private Brands Are About More Than Lower Cost
Just a short time ago, the north star for some private brand programs was to laser focus on what the leading manufacturer brands were doing and build a lower cost option. Today, that north star has been displaced by several consumer influencers.
3. Transparency Is One of These Consumer Influencers
Shoppers want to know where their food comes from, and a transparent supply chain has never been more desirable. Options like SmartLabel® help shoppers make informed decisions about products they are considering.
4. Health and Well-Being and Social Issues Matter Too
From the use of food to positively influence health and well-being, to social issues driving environmental decisions on how we manufacture and how we package products, shoppers are choosing products that help them eat well, shop well and live better.
5. Trading Partner Collaboration is Essential
The final imperative, which will either aide success or secure failure for some private brands, is how trading partners must change the collaboration model to better meet the many metrics and demands facing private brands today.