A Modern Approach to Private Label Brands
Legacy brands are in danger, especially because brand loyalty is not what it used to be. Instead, quality and, oftentimes, price reign supreme. This dynamic is causing brands and retailers alike to pivot in order to keep up with changing consumer preferences. When shoppers can get high-quality alternatives at a lower cost, remaining loyal to a brand name version simply doesn't make sense. So, what are retailers to do in this new reality?
Amazon.com, Target, Jet.com … the list goes on of retailers that have started their own private label brands with significant success. Amazon's private label electronic accessories do especially well because they're a fraction of the cost of the name brand versions and work well. They make it a no-brainer choice for consumers, as they have numerous reviews and answered questions to put any consumer worries to rest.
Jet is a relative newcomer to the market, but it went from crawling to running in no time. The Walmart-owned online retailer follows a successful strategy of noticing holes in the market and filling them to boost profits with private label products. US News chronicled Jet's private label process and attributed part of its success to the age-old practice of offering samples. But instead of standing in the grocery store and offering a sample to anyone who happens to walk by, Jet gets much more targeted than that. Its method involves offering samples for products that customers are likely to enjoy, based on their purchasing habits, coupled with demographic data trends.
