Predictions
1. Private label seen as a key differentiator
Leading retailers are investing in private label in order to drive innovation, lower prices and higher quality. Activity tends to focus predominantly on standard and premium tiers, with new tactics emerging focused on expanding ranges.
7-Eleven Japan is targeting ¥3 trillion (US$25bn) of sales from private label by the end of its 2016 financial year. In order to achieve this, the retailer regularly renews products and is expanding both its Premium and Gold brands, with private label now making up 30-40% of products.
Co-branding private label with well-known brands is also a growing tactic, particularly in Japan. This activity helps to improve the quality image of private label and from a supplier’s perspective ensures their brand presence is maintained in-store. For example, SunKus’ Style One private label and confectionery manufacturer Glico have co-branded on a biscuit line.
