MBS Inspiration
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The MBS Group
is one of the world’s leading executive search firms operating exclusively in Retail, Consumer and relevant technologies, and the most successful sector-specialist firm in the UK
Squaring the circle
I love great brands as much as anyone, but I was reminded this week of the unsung heroes amongst our clients – the private label manufacturers.
Consumers are clearly demanding increased value in tougher economic times and the growth of retailer branded products continues apace. This growth brings huge opportunities for private label manufacturers, but also many challenges. Our consumer products team hosted a discussion breakfast on this topic recently and it became clear that the subject provokes wide-ranging and complex debate.
To do private label well requires a number of key skills – a clear strategy, a tight grip on costs, a hugely efficient supply chain and most importantly, innovation, innovation, innovation. Employees working on private label need to be different animals from their branded counterparts – strong at project management, adept at shaping contracts and quick to respond to briefs from retailers. Those who see their private label business purely as a convenient add-on to fill capacity in their factories are missing a trick and will not be the winners in the private label game.
Brand owners on the other hand cannot be complacent, particularly as own label products are regularly beating branded products in taste and performance tests.
Whatever a business chooses to do, it has to do it well. It can build a great brand, build an innovative, cost efficient private label portfolio or build both and act as a true category captain. However, to address the challenges thrown up by a non-branding porfolio, the strategy has to be clear for employees, for customers and for consumers.
Can brands maintain their supremacy or will private label start to dominate?
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