Chicago Time and Post-Recession Recovery

It was this time last year when Brian Sharoff, president of the PLMA, gave an address that tracked the performance of private label after recessions in the past 20 years. The message was clear. Consumers who are satisfied with private label will not return to national brands after a recession is over.

Quality, assortment and innovation are driving the success of PL. The industry needs to remain committed to offering consumers the best store brands possible.

We appear to be coming out of the worst of the recent collapse, but the path remains very tough to follow. We need to think about what we should be doing to build on what has happened in the past year or so. Are we waiting for the brands to come out of hiding and start advertising again?; to start the major promotional spending we have seen traditionally in “good” times? Or rather, are we redefining what “good” times mean for our industry? If we have managed our categories well; driven product development and innovation; read what consumers want and are prepared to pay for; managed our marketing budgets and optimized the in-store opportunities of shelf space, tasted and tested promotions in the aisles, flyers and check out offerings, then we have already redefined “good” times. We are reaping the benefits every day of a better private label strategy.

Look at the mountains of data coming from IRI, Nielsen and the rest. Consumer preferences and first-choice decisions are re-enforcing the value of our brands every day. Now is the time “not to blink.” Retailers and manufacturers alike have to really put their heads together and devise product development and product promotional strategies that will enable us all to benefit from the upturn of the economic graph.

What plans do we have for invigorating in-store taste tests? Time and time again, this proves to consumers the value of what we have to offer. When did you last have a month long campaign to execute this strategy? Chances are, it’s been a long time (or never).

And yet, when I walk the aisles of the great private label retailers, I am bombarded by opportunities to taste and evaluate the offerings of great stores. When visiting and spending time with manufacturers, I am always amazed at the amount of innovative development they are doing to maximize the opportunities the recent economic downturn has given us. And yet, I am just as amazed at the lack of this kind of dynamism at other manufacturing facilities.

Think on it, folks, as you stand at your booth this year or walk the show. When the retailer stops by and asks “what’s new and exciting?” the answer had better not be “same old, same old.” If you don’t have a bag of new tricks up your sleeve, you might just miss the bus as it leaves 2009. Ditto for you retailers afraid to invest in innovation.

Next year is going to be a real banner year. Make sure you are there waving yours!!!