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How Retailers Can Accelerate Their Private Label Brand Growth | 5IM · Omni Talk Retail

• 0:08
  Joining
• 0:09
  us
• 0:09
  now
• 0:09
  for
• 0:09
  five
• 0:10
  insightful
• 0:10
  minutes
• 0:10
  is
• 0:10
  the
• 0:11
  managing
• 0:11
  director
• 0:11
  at
• 0:12
  the
• 0:12
  A
• 0:12
  and
• 0:12
  M
• 0:12
  Consumer
• 0:13
  and
• 0:13
  retail
• 0:13
  group,
• 0:14
  Marco
• 0:14
  Valentini.
• 0:15
  Marco
• 0:16
  will
• 0:16
  be
• 0:16
  discussing
• 0:16
  with
• 0:17
  us
• 0:17
  the
• 0:17
  results
• 0:17
  of
• 0:18
  his
• 0:18
  company's
• 0:18
  most
• 0:19
  recent
• 0:19
  report
• 0:20
  on
• 0:20
  how
• 0:20
  retailers
• 0:20
  can
• 0:21
  successfully
• 0:21
  build
• 0:22
  and
• 0:22
  foster
• 0:22
  a
• 0:23
  strong
• 0:23
  own
• 0:23
  brand
• 0:24
  strategy.
• 0:25
  Marco,
• 0:26
  first
• 0:26
  question
• 0:26
  for
• 0:27
  you
• 0:27
  today.
• 0:28
  Why
• 0:28
  is
• 0:28
  it
• 0:28
  important
• 0:29
  for
• 0:29
  retailers
• 0:30
  to
• 0:30
  invest
• 0:30
  in
• 0:31
  private
• 0:31
  brands?
• 0:32
  Yes,
• 0:32
  we're
• 0:32
  seeing
• 0:33
  a
• 0:33
  strong
• 0:34
  growth
• 0:34
  of
• 0:35
  private
• 0:36
  brands
• 0:36
  in
• 0:36
  the
• 0:36
  market.
• 0:37
  Private
• 0:37
  brands
• 0:38
  continue
• 0:39
  to
• 0:39
  outgrow
• 0:39
  national
• 0:40
  brands
• 0:41
  and
• 0:41
  they
• 0:41
  continue
• 0:42
  to
• 0:42
  be
• 0:42
  a
• 0:43
  differentiator
• 0:44
  for
• 0:44
  many
• 0:44
  retailers
• 0:46
  and
• 0:46
  their
• 0:47
  offer.
• 0:48
  The
• 0:50
  private
• 0:50
  brands
• 0:50
  today
• 0:51
  represent
• 0:51
  roughly
• 0:52
  20%
• 0:53
  of
• 0:53
  food
• 0:54
  in
• 0:55
  the
• 0:55
  US,
• 0:55
  and
• 0:55
  this
• 0:56
  trend
• 0:56
  is
• 0:56
  continued.
• 0:57
  This
• 0:57
  penetration
• 0:59
  has
• 0:59
  continued
• 0:59
  to
• 0:59
  grow
• 1:00
  over
• 1:00
  the
• 1:00
  last
• 1:00
  ten
• 1:01
  years
• 1:01
  and
• 1:02
  is
• 1:02
  expected
• 1:02
  to
• 1:03
  achieve
• 1:03
  24%
• 1:04
  by
• 1:04
  2030.
• 1:06
  We
• 1:06
  are
• 1:06
  also
• 1:06
  seeing
• 1:07
  private
• 1:07
  brands
• 1:08
  continuing
• 1:09
  to
• 1:09
  outgrow
• 1:11
  national
• 1:11
  brands
• 1:12
  at
• 1:12
  roughly
• 1:12
  the
• 1:13
  rate
• 1:13
  of
• 1:13
  400
• 1:14
  basis
• 1:14
  points.
• 1:15
  That
• 1:15
  means
• 1:16
  that
• 1:16
  think
• 1:17
  about
• 1:18
  every
• 1:18
  year,
• 1:18
  roughly
• 1:19
  $1.5
• 1:19
  billion
• 1:21
  are
• 1:21
  shifting
• 1:21
  from
• 1:22
  national
• 1:22
  brand
• 1:22
  to
• 1:22
  private
• 1:23
  brands.
• 1:23
  So
• 1:24
  there's
• 1:24
  a
• 1:24
  clear
• 1:24
  opportunity
• 1:25
  in
• 1:25
  terms
• 1:26
  of
• 1:26
  market
• 1:26
  share
• 1:27
  there
• 1:27
  to
• 1:27
  capture
• 1:28
  growth
• 1:28
  that
• 1:29
  ultimately
• 1:29
  is
• 1:29
  not
• 1:29
  accessible
• 1:32
  for
• 1:32
  many
• 1:33
  retailers.
• 1:34
  Marco,
• 1:35
  I
• 1:35
  know
• 1:35
  why
• 1:36
  I
• 1:36
  love
• 1:36
  private
• 1:36
  brands,
• 1:37
  part
• 1:37
  of
• 1:37
  that
• 1:38
  reason
• 1:38
  being
• 1:38
  the
• 1:39
  value
• 1:39
  component
• 1:40
  of
• 1:40
  that.
• 1:40
  But
• 1:41
  why
• 1:41
  do
• 1:42
  you
• 1:42
  feel
• 1:42
  like
• 1:42
  customers
• 1:43
  really
• 1:43
  love
• 1:44
  those
• 1:44
  private
• 1:44
  brand
• 1:45
  options?
• 1:46
  Yeah.
• 1:47
  Customers
• 1:47
  are
• 1:48
  often
• 1:49
  loving
• 1:49
  national
• 1:50
  brands,
• 1:51
  private
• 1:51
  brands
• 1:52
  even
• 1:52
  more
• 1:52
  than
• 1:52
  their
• 1:52
  national
• 1:53
  brands
• 1:53
  equivalent.
• 1:55
  They,
• 1:55
  in
• 1:56
  many
• 1:56
  cases,
• 1:58
  the
• 1:58
  customers
• 1:59
  cannot
• 1:59
  distinguish
• 1:59
  whether
• 2:00
  a
• 2:00
  brand
• 2:01
  is
• 2:01
  owned
• 2:01
  by
• 2:01
  a
• 2:01
  retailer
• 2:02
  or
• 2:02
  a
• 2:02
  national
• 2:03
  brand.
• 2:04
  And
• 2:04
  you
• 2:04
  have
• 2:04
  many
• 2:05
  examples
• 2:05
  of
• 2:07
  brand
• 2:07
  that
• 2:07
  have
• 2:08
  highest
• 2:09
  level
• 2:09
  of
• 2:09
  advocacy
• 2:10
  and
• 2:10
  love
• 2:11
  from
• 2:11
  customers.
• 2:12
  Think
• 2:12
  about
• 2:12
  the
• 2:13
  trader
• 2:13
  Joe's
• 2:13
  assortment
• 2:15
  or
• 2:15
  Kirkland
• 2:16
  from
• 2:16
  Costco.
• 2:17
  These
• 2:18
  brands
• 2:18
  are
• 2:18
  highly
• 2:19
  recognized
• 2:20
  and
• 2:20
  they
• 2:20
  not
• 2:21
  just
• 2:21
  provide
• 2:21
  value,
• 2:22
  but
• 2:22
  they
• 2:22
  also
• 2:23
  provide
• 2:23
  the
• 2:23
  highest
• 2:24
  level
• 2:24
  of
• 2:24
  differentiation
• 2:27
  and
• 2:27
  innovation
• 2:28
  for
• 2:28
  the
• 2:28
  customers.
• 2:29
  I
• 2:30
  would
• 2:30
  say
• 2:30
  that
• 2:31
  very
• 2:31
  often
• 2:32
  the
• 2:33
  minimum
• 2:34
  condition
• 2:34
  is
• 2:35
  to
• 2:35
  provide
• 2:36
  a
• 2:37
  30%
• 2:37
  to
• 2:37
  40%
• 2:39
  price
• 2:40
  positioning
• 2:41
  below
• 2:42
  the
• 2:42
  national
• 2:42
  brand
• 2:42
  equivalent
• 2:43
  with
• 2:43
  the
• 2:43
  same
• 2:43
  level
• 2:44
  of
• 2:44
  quality.
• 2:45
  This
• 2:45
  is
• 2:45
  kind
• 2:45
  of
• 2:45
  the
• 2:46
  traditional
• 2:46
  positioning
• 2:47
  of
• 2:47
  national
• 2:47
  brands.
• 2:48
  But
• 2:48
  the
• 2:48
  most
• 2:48
  successful
• 2:49
  players
• 2:50
  have
• 2:50
  been
• 2:50
  able
• 2:51
  to
• 2:52
  innovate
• 2:53
  and
• 2:53
  also
• 2:53
  add
• 2:55
  the
• 2:55
  highest
• 2:55
  level
• 2:55
  of
• 2:56
  differentiation,
• 2:57
  innovation
• 2:58
  through,
• 2:59
  for
• 2:59
  example,
• 3:00
  unique
• 3:01
  product
• 3:01
  ranges,
• 3:02
  unique
• 3:03
  flavors,
• 3:04
  unique
• 3:04
  packaging,
• 3:06
  or
• 3:06
  capturing
• 3:07
  specific
• 3:08
  pocket
• 3:08
  of
• 3:08
  demands
• 3:09
  that
• 3:09
  are
• 3:09
  not
• 3:09
  normally
• 3:12
  served
• 3:12
  by
• 3:13
  national
• 3:13
  brands.
• 3:14
  Think
• 3:15
  about
• 3:15
  retailers,
• 3:16
  for
• 3:16
  example,
• 3:16
  that
• 3:16
  developed
• 3:18
  organic
• 3:18
  ranges,
• 3:20
  for
• 3:20
  example,
• 3:21
  365
• 3:22
  from
• 3:22
  Whole
• 3:22
  Foods.
• 3:23
  Or
• 3:23
  think
• 3:24
  about
• 3:24
  retailers
• 3:25
  that
• 3:25
  have
• 3:25
  been
• 3:25
  able
• 3:25
  to
• 3:26
  develop
• 3:26
  premium
• 3:27
  ranges.
• 3:27
  Think
• 3:27
  about
• 3:27
  private
• 3:28
  selection
• 3:28
  of
• 3:28
  Kroger.
• 3:31
  Got
• 3:31
  it.
• 3:31
  All
• 3:31
  right,
• 3:32
  Marco,
• 3:32
  let's
• 3:32
  get
• 3:32
  you
• 3:33
  out
• 3:33
  of
• 3:33
  here
• 3:33
  on
• 3:33
  this.
• 3:33
  So,
• 3:34
  for
• 3:34
  the
• 3:34
  average
• 3:34
  c
• 3:34
  suite
• 3:35
  executive
• 3:35
  listening
• 3:35
  to
• 3:36
  this
• 3:36
  podcast,
• 3:37
  what
• 3:38
  should
• 3:38
  they
• 3:38
  do
• 3:39
  to
• 3:39
  accelerate
• 3:40
  their
• 3:40
  private
• 3:40
  label
• 3:41
  brand
• 3:41
  growth?
• 3:43
  Yeah,
• 3:44
  that's
• 3:44
  a
• 3:44
  very
• 3:44
  good
• 3:44
  question,
• 3:45
  Chris.
• 3:45
  It
• 3:45
  requires
• 3:46
  quite
• 3:47
  a
• 3:47
  lot
• 3:47
  of
• 3:47
  focus
• 3:47
  and
• 3:48
  discipline.
• 3:48
  Right.
• 3:49
  I
• 3:49
  think
• 3:49
  the
• 3:50
  most
• 3:51
  important
• 3:52
  aspect
• 3:53
  of
• 3:53
  this
• 3:53
  is
• 3:54
  to
• 3:54
  build
• 3:55
  commitment
• 3:56
  throughout
• 3:56
  the
• 3:56
  leadership
• 3:57
  team
• 3:57
  within
• 3:57
  the
• 3:57
  organization.
• 3:59
  You
• 3:59
  know,
• 4:00
  firstly,
• 4:01
  at
• 4:02
  the
• 4:02
  chief
• 4:02
  merchant
• 4:03
  level,
• 4:03
  chief
• 4:04
  merchants
• 4:04
  have
• 4:04
  to
• 4:05
  treat
• 4:05
  private
• 4:06
  brands
• 4:07
  with
• 4:07
  the
• 4:07
  same
• 4:08
  level
• 4:08
  of
• 4:08
  attention
• 4:08
  to
• 4:09
  detail
• 4:09
  or
• 4:09
  even
• 4:09
  higher
• 4:10
  that
• 4:10
  they
• 4:10
  use.
• 4:11
  For
• 4:11
  national
• 4:11
  brands,
• 4:12
  this
• 4:13
  is
• 4:13
  not
• 4:13
  just
• 4:13
  about
• 4:14
  setting
• 4:14
  up
• 4:14
  targets,
• 4:15
  but
• 4:16
  it's
• 4:16
  also
• 4:16
  being
• 4:16
  consistent
• 4:17
  and
• 4:17
  having
• 4:17
  a
• 4:18
  year
• 4:18
  round
• 4:18
  commitment
• 4:19
  around,
• 4:19
  for
• 4:20
  example,
• 4:21
  product
• 4:21
  innovation,
• 4:23
  planograms,
• 4:24
  promotions
• 4:25
  and
• 4:25
  so
• 4:25
  on
• 4:25
  and
• 4:25
  so
• 4:25
  forth.
• 4:26
  You
• 4:27
  need
• 4:27
  to
• 4:27
  have
• 4:27
  strong
• 4:27
  support
• 4:28
  from
• 4:29
  all
• 4:29
  the
• 4:29
  other
• 4:30
  functions.
• 4:30
  Think
• 4:31
  about
• 4:31
  supply
• 4:32
  chain
• 4:32
  to
• 4:32
  ensure
• 4:33
  availability
• 4:33
  of
• 4:33
  the
• 4:34
  product,
• 4:34
  procurement,
• 4:35
  to
• 4:36
  kind
• 4:36
  of
• 4:36
  have
• 4:37
  the
• 4:37
  right
• 4:38
  vendor
• 4:38
  partnerships
• 4:39
  and
• 4:39
  ultimately
• 4:40
  the
• 4:40
  execution
• 4:40
  in
• 4:41
  the
• 4:41
  stores.
• 4:42
  Marketing
• 4:43
  has
• 4:43
  to
• 4:43
  be
• 4:43
  highly
• 4:44
  engaged
• 4:44
  to
• 4:45
  provide
• 4:45
  focus
• 4:46
  and
• 4:46
  investment
• 4:47
  to
• 4:47
  the
• 4:48
  development
• 4:48
  of
• 4:48
  the
• 4:48
  brands.
• 4:50
  Ultimately,
• 4:51
  the
• 4:52
  commitment
• 4:52
  to
• 4:52
  private
• 4:53
  brands
• 4:54
  have
• 4:54
  to
• 4:54
  start
• 4:54
  at
• 4:55
  the
• 4:55
  CEO
• 4:55
  and
• 4:55
  CFO
• 4:56
  levels
• 4:57
  because
• 4:57
  they
• 4:58
  have
• 4:58
  to
• 4:59
  be
• 5:01
  able
• 5:01
  to
• 5:01
  align
• 5:02
  the
• 5:02
  entire
• 5:03
  leadership
• 5:03
  team
• 5:03
  of
• 5:03
  the
• 5:03
  organization
• 5:04
  around
• 5:05
  a
• 5:05
  shared
• 5:05
  goal
• 5:06
  and
• 5:07
  also
• 5:07
  a
• 5:08
  clear
• 5:08
  set
• 5:08
  of
• 5:08
  KPI's
• 5:09
  and
• 5:09
  targets.
• 5:11
  The
• 5:11
  investments
• 5:12
  have
• 5:12
  to
• 5:12
  be
• 5:15
  measured
• 5:15
  to
• 5:15
  the
• 5:16
  ambition
• 5:17
  and
• 5:17
  the
• 5:18
  private
• 5:19
  brand
• 5:19
  teams
• 5:20
  have
• 5:20
  to
• 5:20
  be
• 5:20
  right
• 5:21
  sized
• 5:22
  and
• 5:22
  at
• 5:22
  the
• 5:22
  same
• 5:22
  time
• 5:23
  empowered
• 5:24
  to
• 5:24
  drive
• 5:24
  change.
• 5:26
  You
• 5:26
  need
• 5:26
  the
• 5:26
  dedicated
• 5:27
  investments
• 5:28
  in
• 5:28
  branding,
• 5:29
  in
• 5:29
  marketing,
• 5:30
  but
• 5:30
  also
• 5:30
  in,
• 5:31
  for
• 5:31
  example,
• 5:31
  developing
• 5:33
  production
• 5:34
  capabilities
• 5:35
  with
• 5:35
  some
• 5:35
  of
• 5:35
  your
• 5:35
  suppliers.
• 5:37
  I
• 5:37
  mean,
• 5:38
  in
• 5:38
  essence,
• 5:39
  private
• 5:39
  brand
• 5:40
  development
• 5:40
  today
• 5:41
  is
• 5:42
  more
• 5:42
  an
• 5:42
  imperative
• 5:43
  than
• 5:44
  an
• 5:44
  option
• 5:44
  for
• 5:45
  many
• 5:45
  grocers
• 5:46
  and
• 5:48
  you
• 5:48
  really
• 5:48
  need
• 5:49
  strong
• 5:49
  commitment
• 5:49
  from
• 5:50
  the
• 5:50
  entire
• 5:50
  organization.
• 5:51
  But
• 5:51
  the
• 5:51
  good
• 5:51
  news
• 5:52
  are
• 5:53
  that
• 5:53
  the
• 5:53
  players
• 5:53
  that
• 5:54
  are
• 5:54
  able
• 5:54
  to
• 5:54
  achieve
• 5:54
  that
• 5:55
  positioning
• 5:55
  very
• 5:56
  often
• 5:56
  are
• 5:56
  delivering
• 5:57
  stronger
• 5:58
  market
• 5:58
  results
• 5:59
  and
• 5:59
  at
• 6:00
  the
• 6:00
  same
• 6:00
  time,
• 6:00
  strong
• 6:01
  shareholder
• 6:01
  results.
• 6:02
  Thanks
• 6:03
  Marco.
• 6:03
  Great.
• 6:03
  Thank
• 6:03
  you
• 6:03
  Marco.
• 6:04
  And
• 6:04
  remember,
• 6:05
  if
• 6:05
  you're
• 6:05
  interested
• 6:05
  in
• 6:06
  reading
• 6:06
  the
• 6:06
  A
• 6:06
  and
• 6:06
  M
• 6:06
  consumer
• 6:07
  and
• 6:07
  Retail
• 6:07
  group's
• 6:08
  full
• 6:08
  report
• 6:08
  on
• 6:09
  how
• 6:09
  you
• 6:09
  can
• 6:09
  accelerate
• 6:10
  your
• 6:10
  private
• 6:10
  label
• 6:11
  brand
• 6:11
  journey,
• 6:11
  just
• 6:12
  check
• 6:12
  out
• 6:12
  our
• 6:13
  podcast
• 6:13
  description
• 6:14
  where
• 6:14
  you'll
• 6:14
  find
• 6:14
  the
• 6:14
  link.
• 6:15
  Or
• 6:15
  you
• 6:15
  can
• 6:15
  also
• 6:15
  head
• 6:15
  to
• 6:16
  Omnitoc
• 6:16
  blog.