Global Retailers Lead Innovation

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GEORGE PURO President PURO RESEARCH

GLOBAL RETAILERS LEAD THE WAY IN BRAND INNOVATION

Three of the world’s top international retailers move into uncharted territory in several private label categories.

The National Retail Federation and Kantar recently ranked Walmart, Amazon and Schwarz Group as the world’s “most impactful international retailers” based on factors such as international revenues, alliances beyond their local regions, online marketplaces and omnichannel approaches, and other criteria. But they lead in another way too – as retail brand innovators. We explore some of the latest store brand strategies from these retailers.

SHOT IN THE ARM

Walmart entered the insulin category with the launch of ReliOn NovoLog, billed as the first-ever private brand insulin. The product is expected to save consumers 58% to 75% off of the cash price of branded analog insulin products, and was called by Walmart President and CEO Doug McMillon “a huge win for customers.” The announcement has been heralded by industry experts as great news for helping to bring costs down for insulin, which was first introduced to the world one hundred years ago. Other new private label initiatives from Walmart include the new, vet-formulated premium dog and cat food Pure Balance PRO+ and a new sustainability certification from the Rainforest Alliance for the Great Value Brand’s black and green teas. Walmart’s private brands account for about 30% of its U.S. sales. In 2020, the company said that it had 18 house brands generating over $1 billion in revenue, including its Great Value brand with more than $27 billion annually.

LET’S BE CLEAR

In a bid towards transparency about its own brands, Lidl announced in 2020 that it would divulge a list of its food suppliers, with the goal of improving sustainability standards in its supply chains. The Germanbased retailer also publishes its supplier lists for hardware and textiles. As of September 2021, the food supplier list contains more than 1,100 companies, as well as the addresses for their main production facilities, more than half of which are located in Germany.

Lidl and sister company Kaufland, which are both part of the Schwarz Group, have introduced recent private label offerings that reflect hot trends in consumer goods. For example, Lidl and Kaufland have introduced household items such as organizers and laundry bins made from 100% recycled plastic. Lidl Germany and Lidl Italia have debuted climate-neutral items including body care and cleaning products.

GET THE PICTURE

Amazon continues to push into the world of private label. While Amazon said in October 2019 that private label made up just one percent of its sales, it continues to pour resources behind its private label endeavors. Retail analytics firm 1010data estimated that Amazon’s private label sales increased 50% in 2020. And in May 2021, Amazon disclosed that it sells 243,000 products under 400 private label brands. These include Amazon Basics (home goods and office supplies), Amazon Essentials (clothing), Amazon Elements (vitamin and nutritional products), Happy Belly (packaged foods), Presto! (detergent and household goods) and the Whole Foods 365 brand. One new entrant from Amazon is Aplenty, a new food brand that will eventually include hundreds of products, all excluding artificial flavors, synthetic colors and high-fructose corn syrup.

In September 2021, Amazon announced that it was introducing its own brand of “Amazon-built smart TVs” though some experts have speculated that these TVs may be manufactured in whole or part by TCL. The new televisions incorporate Amazon’s Fire TV experience and Alexa voice control. Last year, Amazon released its first AmazonBasics-branded TVs in India.

And in another interesting development, the Wall Street Journal reported in August 2021 that Amazon will open several multipurpose shopping venues to showcase its private label products.

George Puro is President of the Puro Research Group, a market intelligence firm specializing in consumer insights, competitive/market intelligence and analysis. Puro’s services are designed to keep you abreast of the latest trends, make you look smart in presentations and help guide decision-making. The company has provided organizations and companies, ranging from Fortune 100 companies to startups, with aha! insights about competitors, customers and industries in a variety of topics and industries, including consumer products; retail; transportation, travel and hospitality; healthcare and health insurance; financial services and investment banking; traditional marketing, as well as digital and social media marketing.