Private label products used to be what you bought when you were broke, brave, or both. They had a huge stigma associated with it – kind of like the ramen noodle college reference. Now in this economy, getting good deals is now a flex. Oh you love my new skirt, Shein, wink! Ohh this purse? Labor Day Sale!
Thanks to a lot of factors, it’s no longer sad knock offs – private label has had the ultimate glow-up.
Retailers are treating their own brands like real brands now—complete with sleek packaging, clever names, and much to National Brands dismay, actual marketing strategies. We’re talking about full-blown rebrands, chef-collab lines, sustainability creds, and even Instagram ads. They’ve gone from “meh” to “must try,” and shoppers are noticing.
So what changed?
Well, for one, inflation. Consumers are watching their wallets, and private label products often offer solid quality for a lower price. But it’s not just about saving money. Retailers are more invested than ever in building their own brand equity. It gives them margin flexibility, differentiation, and control. If you’re a retailer in the U.S., private label isn’t just a backroom project anymore—it’s a front-and-center growth engine.
But before you panic and start playing “In the Arms of the Angels” for national brands, let’s get real: some of you are still absolutely winning.
National Brands: Still in the Game
Market share erosion is real—but it’s not universal. If you’re a beloved brand with strong equity and a cult following, your shoppers aren’t going anywhere. Let’s take Nutella, for example. There are copycats out there, sure. But are Nutella diehards switching to “Hazelnut Spread by Great Value”? Unlikely. There’s loyalty, there’s emotional connection, and honestly, there’s taste.
That said, if you’re in a category where private label is creeping in and taking bites out of your pie (pun intended), now’s the time to get scrappy.
Your Move: Innovation and Limited-Time Offers (LTOs)
One thing private label struggles with? Agility. National brands can often move faster on trends, drop seasonal LTOs, and create buzz. Think Oreo with every flavor under the sun. Or Gatorade launching watermelon-chili-hybrid-everything in time for summer. Innovation can keep your brand fresh and give consumers a reason to stay curious.
LTOs are also an amazing way to drive urgency and test new products without full commitment. (It’s basically dating without deleting your apps).
Retail Media: Your Secret Weapon
Let’s be real—if you’re not showing up in retail media, you’re invisible at the shelf. The physical shelf. The digital shelf. All the shelves.
Retailers are putting more energy (and algorithms) into their own brands, so if you’re a national brand, you have to show up and shout a little louder. Whether it’s paid search, display, offsite, or audio (yes, I said audio—call me if you want to talk Vibenomics), retail media ensures you stay top of mind and top of cart.
It’s not just about spending money; it’s about spending smart. Use closed-loop data to understand your return, your incrementality, and how you can win even in a crowded, private-label-heavy aisle.
Final Thought
Private label might be the shiny new thing, but national brands aren’t going anywhere. You just need to know your strengths, embrace your loyalists, and keep innovating—and maybe flirt a little with retail media while you’re at it.
After all, nothing says “I still got it” like a strong iROAS.