5 Ways Millennials Are Changing Private Label Products
– By Gillian Elizabeth Wood
It is stating the obvious to say that millennials have changed how we communicate, shop, and connect to the world. Through social media they maintain relationships with family and friends. They seek authenticity, transparency and the best value by researching products and companies, often on their mobile phone, in store, at the point of purchase. Here are 5 reasons Millennials influence private label growth and innovation.
Value. Millennials watch their budgets and know that private labels often provide the same quality as national brands. They are also influenced by loyalty programs and promotions. Because they have lived through challenging economic times, millennials are living at home longer and struggling to get traction in their careers.
Quality and sophistication. At the same time that millennials seek value, they also appreciate quality and unique products. Loblaws’ President’s Choice “The Decadent” Chocolate Chip Cookie is a bestseller in Canada. Costco’s popular Kirkland Signature wines are renowned for quality and value.
Innovations in health, including organic food, gluten free foods, healthy foods, and fresh food. Fortune Magazine reported that Kroger’s Simple Truth and organic lines are challenging Whole Foods and other retailers. “Millennials are driving this whole department category,” says Kroger EVP Mike Donnelly.
Innovations in multicultural options. Millennials embrace globalization and international food, and love sharing it with their friends.
Innovations in packaging. Millennials read labels closely. They are very visual, so they also seek high quality, attractive packaging. How many times have you seen someone take a selfie, or photograph and post the picture on Instagram or Pinterest before starting to eat?
Further Opportunities: Millennials
Expect to find brands on social media, and want to be engaged.
Are loyal to products if they have a relationship. Think Apple, Nike, Toms, Dove.
Want instant access and gratification and omni channel experiences.
Value sustainability, and companies with a social conscience.
If private label manufacturing, marketing or retailing is your core competency, and you are exporting or importing, consider partnering with us. Millennials are changing logistics, too! We can help you optimize operations, customer service and cost efficiency. That means you can focus on your core competency. Let’s talk.