Brand Battles

The Lempert Report
August 03, 2022

Phil: There's a new report called the power of private brands, that FMI just came out with and what they found is three quarters of shoppers anticipate continuing to purchase more store brands in the future. Now, the problem is that brands face more threats from private labels as this food inflation keeps on going up and up and up. And now a lot of these retailers are fighting back against brands. What, what is really curious to me, Sally, is whether or not we're gonna see a fight really taking place between brands and retailers and the retailers just stop carrying a lot of brands.

Sally: I wonder the same thing reading about this. And, and you know, one of the things that I learned was that, you know, most consumers, when they're shopping online on a retailer site, that after the first page of searching for something, they're more than likely not going to be on go beyond that, to see what their other brand alternatives are. So if you don't get your product on that first page, and you know, a lot of these retailers are gonna want their own brands on that first page, then you may not get very much visibility with shoppers.

Phil: And what you're also seeing is now, they're calling it swaps. So I go for a certain brand, I click on that online and guess what, you know, the private brand comes up. And it says how much difference it costs in price and the availability and things like that. So a lot of changes are gonna happen.