By Kelly Thompson-Kell, North American Market Strategy Director, Trace One
Today, shoppers want to know exactly what they are buying, where it comes from and how it affects their well-being. According to a recent study by Label Insight, 76 percent of shoppers search online for answers when they cannot find information they are looking for on product labels. There is a desire to obtain information about the quality, the origin and the nutrition, and also the desire to support companies and products that reflect their own values and lifestyle.
In addition, certain preferences and the deliberate choice of ingredients are creating new market trends and fueling the development of more specialty Private Label items. Consumers are becoming more demanding and will not accept failure. If they are disappointed, social media provides an effective way to complain. Suppliers and retailers have the responsibility to respond to these new circumstances if they want to succeed in the highly competitive food retail sector.
Transformation of Retail
As consumer preferences evolve, retailers are finding new opportunities to develop and expand their own brands. However, due to the speed of this upheaval and the consequences, there are also considerable risks involved.
Successful Private Label retail transformation requires excellent communication in product supply chains. Shorter time-to-market, increased cost-effectiveness, understanding customer needs and minimizing risks - these are the key goals. Separating the individual processes is not a viable alternative. Retailers and suppliers must work closely together as strategic partners. This enables them to profitably deliver innovative products, improve the customer experience and optimize the efficiency of the supply chain, ultimately increasing their chances of gaining a head start.