The Phenomenon
A phenomenon can be a one-time occurrence, something remarkable or mysterious. The phenomenon of store brands, however, is no singular or unexplainable event. In fact, store brands have been around for decades and have grown into a $230 billion industry in the U.S. It’s ever changing, penetrating into more and more new categories, and expanding across multiple channels and virtual platforms to become a powerful retail tool to build consumer loyalty and bolster the bottom line for companies.
Consumers are being swept up in the phenomenon, too. Store brands accounted for nearly 30% of all new dollar sales flowing into the U.S. retailing industry last year. Quality, innovation, and value are the fundamentals of why today’s shoppers continue to trust and fill their carts with store brands. This robust industry offers a combination of not only what a family needs but what they want in products that are socially and environmentally aware and support their desire for an overall healthier lifestyle.
Manufacturers and retailers are listening to those consumers. In partnership, they introduce value brands consumers can rely on as well as premium items and exclusive product offerings as a differentiator in today’s competitive retail market. This symbiotic phenomenon is key for the industry. Being able to easily pivot with changing consumer and product trends or surmount logistical challenges keeps the industry on the cutting edge of development and consistently provides retailers an assortment of products.