Written by Remember when “store brand” meant a generic, no-frills product you bought to save a few dollars? It was a temporary trade-down, a choice made out of necessity. That era is over.
Today, private labels are no longer placeholders; they are legitimate brands. It feels like every retailer, from Aldi to Costco to Target and Walmart, is adopting the Trader Joe’s playbook. They’re upgrading their packaging and visual identity, improving product quality, and boldly launching products with unique flavors and experiences. They are competing on shelves with the confidence of a national brand.
This shift changes the entire value equation. As private labels earn consumer trust, they challenge the very reason shoppers have been willing to pay a premium for name brands. The bar has been raised, and these store brands are proving they can meet it.
Take this example of knife block sets. A national brand like Cuisinart sits next to a store brand like Hy-Vee Seasons. Their prices are comparable, their aesthetics are similar, and they both project quality. The consumer isn’t forced to choose based on price; they’re forced to decide if the small differences in features and brand story are worth it. Private labels now compete directly on the “want” factor, not just the “need for savings.”
Simple innovation isn’t enough anymore. So, what should CPG brands do to compete? The old path to growth—easy line extensions and new flavors—is no longer a defensible strategy. It’s too easy for private labels to follow.
The challenge is to deliver defensible value. This requires a deeper kind of innovation: investing in new forms and offerings that are harder to copy. These are the big bets that may require more capital and carry more risk, but they are also what build a long-lasting advantage.
The brands that get this right will not only survive, but thrive. Those that don’t will continue to lose ground to their more agile, brand-savvy competitors on the same shelf.