Store Brands

APR 2016

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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www.storebrands.info / April 2016 / Store Brands 7 7 ease of use and the ability to ensure proper dosing," he adds. The strongest performers on the household cleaner side of late, meanwhile, include all-purpose cleaners, disposable wipes and spray disinfectants featuring simplicity, convenience and quick cleanups plus disinfection. In contrast, the most labor-intensive cleaning products suffered the largest usage declines, Mintel's household surface cleaners study reveals. Tap into opportunities Unit dose remains an important trend in laundry. However, retailers must decide whether to sell a compact store brand powder tablet detergent or a liquid tablet detergent — the former of which may be preferable from a child-safety standpoint, Tuttle says. "Powder tablets are harder to ingest as quickly as a liquid tablet detergent, which may help to placate some of the fears held by concerned parents," he notes. "Store brands should keep an eye on packaging innovations that can help mitigate incidence of children ingestion," he adds. Most other fabric-care products, including stain fighters, chlorine bleach and brighteners, are typically used only occasionally, which indicates that many con- sumers view detergent, coupled with a fabric softener or scent booster, sufficient for most loads, Mintel's home laundry products study suggests. Retailers offer- ing store brand laundry care products might encourage more frequent usage of a full regimen of these prod- ucts by emphasizing the greater degree of customiza- tion and control afforded by separate products. Retailers should emphasize fragrance variety, fragrance mixing and fragrance duration for own- brand fabric softeners and in-wash scent boosters, Mintel notes. Functional benefits such as quicker drying and prolonged clothing life could increase usage or expand the market, the study implies. Harrison urges retailers to review the size and growth of the scent booster category, as well as the category's potential for increased margins. "Avoid the purposeful creation of non-NBE products, unless you will promote them and advertise them aggressively," he adds. "Stick with NBE sizes, colors, fragrances, etc." Since household cleaners that promise maximum effectiveness in reducing and eliminating harmful bacteria and other potential health hazards are in de- mand, multi-purpose cleaners are gaining favor in some category segments with consumers and retailers alike. Although consumers still shop frugally for house- hold cleaner products, opportunities exist for items that deliver extra cleaning power or added convenience, says John Owen, Mintel senior household analyst, in the company's household surface cleaners report. Store brand household cleaning products are gaining favor among more shoppers. Consumers' desire to save money, coupled with the belief that store brands offer effective, efficient cleaning, could result in private label gains in the future, Mintel suggests. Products promising extra cleaning power or easing the cleaning task also have the greatest potential for retailers to charge a premium price. "Cleaning wipes, in particular, have seen tremendous growth in recent years and point to many consumers' interest in products that allow them to quickly clean a surface with minimal effort," Euromonitor's Tuttle says. Child safety is important regarding household clean- ers, too. Part of the appeal of environmentally friendly products is their lower toxicity levels, Tuttle says. "Store brands that can set parents at greater ease through child-safety packaging and non-toxic formula- tions will likely reap benefits as the millennial genera- tion draws closer to their parenting years," he adds. Technology around safety issues is moving fast and private label, with its short production runs, has a hard time keeping up on a cost-reasonable basis, Greenstein cautions. "Regulations now demand resealable pouches, along with a bitter agent in the unit dose film," he adds. Rethink packaging, merchandising As the United States continues to urbanize and the empty nester population increases, many Americans are finding themselves in smaller living quarters where storage space is limited. "Multi-purpose [cleaning] products and packaging that can be easily stowed in small spaces or stacked are likely to remain important as consumers look to fit the essentials in their environment," Tuttle says. Private label products need to provide compelling value, either through quality or price, he continues, while Harrison urges increased use of sleeve labels to enhance product appeal. Cross-marketing and promoting complementary products are important for store brand products in both categories, Harrison says. Cross-merchandised scents have been a common theme in branded cleaners and laundry care products, Tuttle adds. "Investing in store brands' advertising and scent profiles may hold potential for private label brands — if they are able to draw consumers' attention to the presence of a recognizable scent between various products in a private label portfolio," he concludes. SB Do highlight effectiveness, convenience of store brand household cleaners. Don't ignore the trend toward smaller household sizes when it comes to packaging.

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