Opening Keynote at Private Label Pulse 2018

Opening Keynote at Private Label Pulse 2018

We think private label brands are part of the Brand Apocalypse. We have dedicated the last year to understanding what kind of brands will win in the future and how the growth of Amazon and on Amazon will impact that; together with selected experts in the field we want to share our findings.

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Juozas Kaziukėnas

August 21, 2018
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Transcript

  1. None
  2. None
  3. Juozas “Joe” Kaziukėnas joe@marketplacepulse.com

  4. Why Private Label

  5. 18% of CPG goods sold in the USA are private

    label
  6. –Every brand ever “We don’t need Amazon.”

  7. All brands think 
 they are Apple

  8. –The New York Times “About 70% of the word searches

    done on Amazon’s search browser are for generic goods.”
  9. What is a brand 
 in the age of Amazon?

  10. –SunTrust Robinson Humphrey “Amazon’s own private label brands to reach

    
 $25 billion in revenue by 2022.”
  11. Most products are good

  12. Casper vs Signature Sleep

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  15. $995 vs $252

  16. None
  17. “Hey, the same mattress is on Amazon for 1/4th the

    price, Prime shipping, top reviews.”
  18. CPG goods are commodities + branding

  19. Spend marketing dollars to build brand. Use branding to get

    the HQ retailer shelf space. Sell product, further build brand. Old CPG strategy
  20. Procter & Gamble spends more than $2 billion every quarter

    on advertising and marketing
  21. High Amazon rating, thousands of reviews, low prices New CPG

    strategy
  22. Millennials

  23. –Cadent Consulting Group “Just over half of millennials, 51%, have

    no real preference between private-label and national brands.”
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  26. The market

  27. Market forces 1. Brand equity in the digital age much

    lower than in the past 2. Growth of Amazon and search by generic terms 3. Customers caring less about brands 4. Increasing overall quality of most products 5. Reviews are a better indicator than perceived trust 6. Power of Amazon advertising
  28. Private label today is increasing in selection, quality, and value

    to consumers
  29. The bad

  30. Saturation

  31. None
  32. Confused consumers

  33. Lack of differentiation

  34. Customer acquisition costs skyrocketing

  35. The future

  36. Private label can challenge 
 all hard goods brands

  37. Private label brands Private label brands

  38. Private label brands Owned brands

  39. None
  40. Expanding international markets

  41. It’s not about the price

  42. None