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TOTAL HOME RETAIL INNOVATION & INSPIRATION
November/December 2019
PRIVATE LABEL HOME
FALL 2019
COVER STORY
EXAMINING BEST PRACTICES AT RETAIL
month 20xx
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HOLIDAY 2021
Fresh Finds for SUMMER
GIFTING ALL THE WAY
Renaissance Private Label by Jenny McTaggart
Home retailers are increasingly turning to in-house brands in an effort to differentiate themselves and appeal to today’s multichannel shoppers
Women
I
n William Shakespeare’s classic play “Romeo and Juliet,” Juliet ponders, “What’s in a name? That which we call a rose by any other name would smell as sweet.” She is reasoning, of course, that no matter what Romeo’s name is (in this case, representing her family’s rival house of Montague), he is still her true love. In the world of 21st century retailing, it seems that retailers are making a similar claim about private labels. While the names of their proprietary, in-house brands are different, the products they represent are very close to their national brand counterparts—and are bringing in some sweet-smelling profits and coveted customer loyalty in today’s very competitive, omnichannel environment.
What’s in a name? That which we call a rose by any other name would smell as sweet.
Private label isn’t a new concept for home furnishings retailers—department stores such as Macy’s have been offering their own branded sheets and other textiles for decades, and some specialty stores such as IKEA have built their entire concepts around offering an exclusive, in-house brand. But these days there is clearly a private label renaissance in bloom, as retailers look for new ways to attract and keep customers by offering a wide array of well designed, smartly priced products—ranging from value to upscale—that are unique to their stores and websites. A quick recap of private label activity in home furnishings just in the past year underscores this growing trend: •
INSPIRING IN HOME
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TOTAL HOME RETAIL INNOVATION & INSPIRATION
6 WINTER 2019 | P R I VAT E L A B E L H O M E
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Target Corp. launched about a dozen home goods and apparel brands over the last year. At the beginning of 2018 the retailer introduced Opalhouse, an arts-inspired, colorful collection of eclectic pieces spanning bedding, bath, décor, tabletop and furniture. Then in June the company unveiled its Made By Design brand, featuring 750-plus basics like towels, cooking utensils, glassware, plates, pots and closet organizers (with most items priced under $30). In March Walmart unveiled Allswell, a design-centric home brand. The first categories included in the line are luxe mattresses and bedding, and they are being sold exclusively online.
•
Kohl’s announced a new exclusive home lifestyle collection with HGTV’s Jonathan and Drew Scott, called Scott Living at Kohl’s (the line will launch next fall).
•
Amazon just launched a new furniture brand called Ravenna Home, which follows the introduction of two furniture brands—Rivet and Stone & Beam—in November 2017.
•
In September e-commerce player Wayfair introduced Greyleigh, a collection of artisan-inspired home furnishings including both furniture and décor at competitive prices.
•
Overstock, another online retailer, in May launched a whopping 17 private label furniture brands, adding more than 16,000 SKUs to its website.
So what’s behind this onslaught of new private brands, and will the trend continue? “Private label isn’t new in home furnishings, but it’s evolving in brand pillar aspects, as well as in new styles that retailers perceive will be more contemporary and engaging with the consumer,” said Steve Goldberg, president of The Grayson Company retail consulting firm. He said he sees the trend as part of the natural retail cycle, noting, “Retailers have to reinvent, and reinvent and reinvent.” Cristina Fernandez, director and senior research analyst at Telsey Advisory Group, pointed to the importance of retailers differentiating themselves, especially since major branded products can now be shopped for and purchased virtually anywhere. “Within retail in general, the big theme for a lot of these companies is how they differentiate their product,” she said. “They want to have products that are exclusive to them, that aren’t sold everywhere else. In a way, this is so that they can defend themselves against price comparisons, so that the consumer isn’t shopping for their products on Amazon or another place.” Especially at larger chains, the percentage of private label or exclusive product has “ramped up significantly,” Goldberg pointed out.
P R I VAT E L A B E L H O M E | WINTER 2019 7
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