Through a special arrangement, what follows is an excerpt of a current article from Private Label Buyer, presented here for discussion.
Building a successful health and wellness destination - starring your store brands - will require a workable game plan and oodles of hard work. According to Thom Blischok, Consulting and Innovation president for Information Resources Inc. (IRI), retailers must first develop a deep understanding of the shopper behavioral changes taking place in this recession. Consumers are seeking out affordable solutions, and the health-and-wellness arena is no exception.
"In a time of economic stress like this, people realize that they have tradeoffs," Mr. Blischok said. "So 25 percent of America is now using the Internet and over-the-counter drugs [for health-care issues]; they're making fewer doctor visits. ... There is a movement toward healthier eating, healthier dining, healthier foods, because they can't afford to go to the doctor, can't afford to get sick."
Second, retailers need to develop a health and wellness platform. Mr. Blischok points to Hy-Vee's "immersion-based" health and wellness platform as a great grocery example, and also likes what Hannaford Bros. has done with its Guiding Stars nutrition navigation system.
"I think that Walgreens and CVS are working their strategies around a better quality of life," he added. "I think that's also very important."
Third, retailers need to establish a believable brand promise for private label health-and-wellness-minded items, Mr. Blischok said.
"After brand promise, then you have to organize your marketing strategies and merchandising around the idea that you can fulfill that promise - that you have products that actually meet the needs of the shopper, and they've been tried and tested to deliver that promise."
Matt Walker, director of marketing for Cliffstar Corp., stresses that consumer expectations have changed, too.
"As more and more consumers watch what they put into their bodies, they expect more from every company they purchase from. ... Every company that wants to succeed in this economy has to find solutions for every consumer," he emphasized.
And retailers are ideally situated to accomplish this with their private label programs, adds Pat Nicolino, vice president of marketing for Clement Pappas.
"One of the huge opportunities here that private label has is to make good things in life universally available to everybody - because everybody deserves great opportunities," she said. "[National] brands can't pull that off all by themselves, but a retailer that's got 1,000 private label items in a store can really pull together a very strong message."
Discussion Question: What role should private label play in helping a store become a health and wellness destination? What else is required?