A new survey identified the leading challenges facing the grocery industry, and the results are closely tied to challenges facing the private brand sector.
TD Bank conducted the survey of food and beverage professionals at the 2019 Groceryshop conference, held mid-September in Las Vegas, and found that nearly one third of respondents were concerned with "new e-commerce channels," ranking as the top challenge facing the grocery industry. Second to that was "evolving technology" (26%), followed by "changing consumer behaviours" (25%).
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As private brands look to compete with national brands, many of the same challenges fall into these three categories: For example, how do private brands promote themselves and sell better on e-commerce when national brands are outspending them in the online space to get their products to the top of the search page.
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Consumer behaviours such as wanting healthier foods, being conscious of spend and wanting more sustainable solutions were of concern to the respondents, but 57% said providing a convenient shopping experience was the biggest consumer behaviour to impact the grocery business. These behaviours are challenges the private brand industry has been working to get out in front of with such initiatives as clean label products and saving shoppers time.
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Looking at revenue for the year ahead, 76% of respondents expected that grocers would grow and the market would increase.
A version of this article appeared at StoreBreands.com.