Brands are navigating a complex landscape characterised by fierce competition and shifting consumer behaviours. IGD’s latest report, “How brands can drive growth in challenging times,” provides practical strategies and examples from successful brands globally.
The report highlights significant challenges, noting that private labels are increasing their market share, with an anticipated 86% price difference by 2025. Over half of global consumers (53%) are purchasing more private label products. As private labels enhance their design and features, the distinction between them and established brands diminishes.
Brands face additional hurdles with a diluted share of voice and prevalent brand switching, requiring them to work harder to differentiate themselves and drive sales in a fragmented market. Despite this, brands have reasons for optimism. Michaela Jay, Insights Manager at IGD, states, “The battle for shopper choice is fiercely competitive, but brands are fighting from a position of strength. And it’s by playing to their strengths that brands can secure lasting victory.”
Consistency in shopper perception and trust remains strong, with brands continuing to influence product choice across most categories. Brand loyalty endures, particularly where quality and reliability are crucial, such as in family purchases or special occasions.
IGD identifies three key drivers for brand success: visibility, innovation, and emotional connection. Brands must strategically engage where consumer attention is highest, stay ahead of evolving trends, and foster emotional ties with consumers to drive product affinity.
Jay further notes, “We have identified three levers that stand the test of time and provide an advantage in the market. But it’s the execution that determines the winners. Whether you are a new brand, established brand, or a retailer, you must ensure each lever is activated in a meaningful way to cut through the noise and engage shoppers.”
For further insights and global case studies on brand success, visit the IGD report.
