Millennials, once known for their brand obsession, are now the driving force behind the growth of private label or store brands.
Private label brands in food and retail are now a large portion of the market share, and millennials are largely responsible for this trend because they are unwilling to spend on premium brands, reported Forbes. The generation remains underemployed and they are willing to trade up and trade down, depending on the perceived brand value.
As a generation looking to be "cool," millennials do not necessarily associate on-trend with high-end. Price is not the determining factor of a brand's value. "Extraordinary brand value is a combination of brand uniqueness, meaningfulness and the opportunity for millennials to participate or co-create," wrote Jeff Fromm, president of Future Cast, a millennial marketing agency.
For example, two private label brands that seem to have captured millennials' attention at Target (NYSE:TGT) include Archer Farms and Up and Up. Archer Farms in the grocery section is meant to look high-end and not like a private label. Up and Up includes everything from diapers to luggage, but with a logo that promotes utility and savings.
Private labels are just one way in which Target is reaching out to millennials. The retailer recently launched a new mobile shopping app and a YouTube back-to-school campaign to grab the attention of these young shoppers.
The private label market still has a lot of untapped potential, especially in the category of family and baby products. Ten thousand millennial moms, many with small budgets, give birth each day, breeding a generation in need of inexpensive pacifiers, wipes and formula.
Also untapped are the athletic division and beauty brands. In athletics, Nike continues to be the most popular brand among millennials, followed by brands such as Under Armor. And while the younger millennials ages 18 to 22 tend to favor Sephora, those 23 to 34 tend to avoid spending on expensive cosmetics.
-See this Forbes article
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