Store Brands - May 2018 - 6

EDITOR'S TAKE
Business Intelligence for an Evolving Market

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WHY MILLENNIALS MATTER

Katie Brennan

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(EVEN THOUGH YOU'RE TIRED OF HEARING ABOUT THEM)

EDITORIAL
Editor-in-Chief

Lawrence Aylward

(330) 635-2586

laylward@ensembleIQ.com

Managing Editor

Carolyn Schierhorn

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Contributing Writers

Warning: The following is another commentary about
millennials and private brands. I know a lot of people -
including millennials themselves - are tired of hearing about
millennials and private brands. For the record, I'm tried of
hearing (and writing) about millennials and private brands.
But as Don Stuart said recently during a seminar at the
Private Label Manufacturer Association's Annual Meeting &
Leadership Conference, millennials will play a pivotal role in the "boom or bust" of
private brands in coming years. They can't be ignored.
Stuart, managing partner of Wilton, Conn.-based Cadent Consulting
Group, believes private brands are sitting on the cusp of a major boom. So do
a lot of people. In fact, when Stuart asked the 200 or attendees of his seminar
to raise their hands if they thought store brands would be booming in the next
five years, almost all hands went up. Zero hands were raised when Stuart asked
who thought private brands would be a bust.
Stuart and his firm have been studying private brands closely and crunching
numbers along the way. While many reports say that "most" millennials are
open to purchasing private brands and are brand agnostic, Stuart believes that
number is closer to half of millennials, about 51 percent. But that number is
still significant, considering that only 39 percent of baby boomers are open to
purchasing private brands, he adds.
"That's 12 percent, which makes a difference in the share shifts," Stuart stressed.
Stuart also noted that there will be 15 million more millennials than baby
boomers in the next 10 years simply because baby boomers will be leaving this
world. So the the share shift factor that Stuart talks about looms even larger. The
more millennials, the more chance there is that they will purchase private brands.
The fewer baby boomers, the less chance that they will purchase national brands. So
you can see where Stuart is coming from.
"All of a sudden there are those coin flips that could go store brands' way because
branded products don't mean as much to millennials," Stuart says.
The perimeter of the store is another factor. Retailers realize they must grow
the store perimeter with more fresh private-branded offerings because the
center store is shrinking and that space must be accounted for. Guess what?
Millennials love fresh products. Another score for potential private brands.
Other factors play into a potential private brand boom, Stuart notes, but we can't
stop talking about millennials' impact anytime soon.
Of course, retailers and manufacturers must continue to decipher what
millennials want in terms of food and non-food items, which can be a moving
target. But it's clear that millennials prefer organic and free-from products, which is
where retailers and manufacturers are already putting much focus.
Stuart predicts that private brands could grow 8 share points in the next 10 years,
"which is an incredible rate from where we have been," he says.
But there is one thing that could deflate the boom. "Trust," Stuart says.
Considering millennials are a demanding
bunch, retailers and manufacturers will have
to do everything they can to gain their trust
- for the sake of their private brands.
Lawrence Aylward, Editor-in-Chief

Rich Mitchell, Dana Cvetan

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EVENTS * MARKETING * DIGITAL * RESEARCH * CIRCULATION
CORPORATE OFFICERS
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Alan Glass

Chief Executive Officer

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Chief Operating Officer &
Chief Financial Officer

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Chief Brand Officer

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Chief Digital Officer

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Senior Vice President, Innovation

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Tanner Van Dusen

laylward@ensembleIQ.com

2015

6

Store Brands / May 2018 / www.storebrands.com


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Table of Contents for the Digital Edition of Store Brands - May 2018

Contents
Store Brands - May 2018 - Cover1
Store Brands - May 2018 - Cover2
Store Brands - May 2018 - 3
Store Brands - May 2018 - Contents
Store Brands - May 2018 - 5
Store Brands - May 2018 - 6
Store Brands - May 2018 - 7
Store Brands - May 2018 - 8
Store Brands - May 2018 - 9
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Store Brands - May 2018 - Cover3
Store Brands - May 2018 - Cover4
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https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201901
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201812
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201811
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201810
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201809
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201808
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201807
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201806
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_bestpractice
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201805
https://www.nxtbookmedia.com