Demand for value retail began as novelty and morphed into need, in the aftermath of the global financial crisis.
However, as savvy consumerism spread, shoppers began to seek out discounted products, first the brands and then private label. Because of the high level of surrogate labels in hard discount offerings, branded goods suppliers have found it necessary to actively support the pound shops, thereby helping them become permanent - and growing - features of the landscape...
The evidence is all around us, especially in the latest results from Poundland.
However, whilst need-driven demand will last beyond flatline, shopping at value stores has become a matter of choice, thus ensuring their long term growth.
For this reason, it is important that suppliers evolve cost-based strategies to ensure that their brands that sell for a pound are self-financing, in order to avoid the risk of subsidising via larger SKUs.
In other words, suppliers have to find a way of launching a £1 brand into the value market at a sustainable cost-price, especially if the 'pound size' finds its way into mainstream channels in response to choice-based demand...
However, as savvy consumerism spread, shoppers began to seek out discounted products, first the brands and then private label. Because of the high level of surrogate labels in hard discount offerings, branded goods suppliers have found it necessary to actively support the pound shops, thereby helping them become permanent - and growing - features of the landscape...
The evidence is all around us, especially in the latest results from Poundland.
However, whilst need-driven demand will last beyond flatline, shopping at value stores has become a matter of choice, thus ensuring their long term growth.
For this reason, it is important that suppliers evolve cost-based strategies to ensure that their brands that sell for a pound are self-financing, in order to avoid the risk of subsidising via larger SKUs.
In other words, suppliers have to find a way of launching a £1 brand into the value market at a sustainable cost-price, especially if the 'pound size' finds its way into mainstream channels in response to choice-based demand...
No comments:
Post a Comment