Across the globe, consumers are altering their path to purchase and increasingly turning to online channels to address their shopping needs in response to the lingering effects of COVID-19. With this shift, the need for retailers to be digitally-focused and pivot from conventional to omnichannel retailing is critical to remain competitive and relevant to the post-pandemic shopper. From expanding e-commerce platforms, diversifying fulfillment solutions and digitizing the in-store experience, a comprehensive approach is required to satisfy new shopping expectations and maintain connectivity with the shopper. As the race to become more omnichannel intensifies, Private Brands will play an even more important role in serving as a competitive advantage. With growing Private Brand relevancy amidst the aftermath of COVID, retailers have the opportunity to better leverage their Private Brands, particularly online where they have historically been under-represented. Maximizing visibility of Private Brands across digital platforms, including e-commerce, mobile apps, in-store technologies and digital intermediaries will be key to competing in the new omnichannel landscape and driving growth for the banner and brands. Here is an inside look into how the shift to omnichannel is impacting retail and Private Brands around the globe.

EUROPE

Throughout Europe, more than 20 new agreements have been signed between retailers and brands with grocery delivery intermediaries, in an attempt to continue servicing and reaching the confined consumer. In the UK a key retailer kicked-off an on-demand 30-minute grocery home delivery for the first time, offering an initial range of 150 essential products, while in Spain, a global FMCG manufacturer established a partnership to sell directly to consumers. Grocery delivery intermediaries are now also trying to harness the strength of Private Brands by evolving their services and developing exclusive products ranges, as it is the case of a local player in Russia, which has launched its own brand across several categories.

SOUTH AFRICA

Retailers are increasingly looking for Artificial Intelligence (AI) / Internet-of-Things (IoT) solutions in the Brick and Mortar space to drive efficiencies. This was fuelled even more by COVID-19, with an increased focus on reducing the number of people in stores. Solutions where AI/IoT are observed include: automated cleaning, shelf stock counting robots, planogram compliance robots, and customer screening for temperature and management of the number of people in stores. E-commerce retailers have also incorporated IoT, where they use IoT solutions in managing orders and stock picking for dispatch.

CHINA

The community group-buying model, centering on bulk delivery, is on the rise in China this year, which is to greatly approach more new customers within the retailers’ radius and to allow consumers to voice their concerns about products as their community leader is just a Wechat message away. This model also focuses on selling groceries and daily necessities, and building trust among shoppers who are looking for healthy consumable items. Moreover, Private Brands such as ready-to-eat and paper products make up a significant proportion of the categories involved and is a highly effective option for building trust due to their value equation ratio.

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