Are Niche Brands Killing the Big Names?

Author: Jarrod Davis

brand marketing

“We’ve all heard niche brands are eroding premium brand share. But maybe the best way to beat them is to join them.” That’s Jessica Hendrix, CEO of Saatchi & Saatchi X, explaining a marketing solution being implemented by large brands.

The problem they’re trying to solve is simply connecting to the changing shopper. More shoppers browsing the aisles and surfing web pages are studying the smaller brands.

On a recent visit with Focus on Suppliers, Hendrix detailed why the change is happening and how the larger brands can adapt. As she says, suppliers have all the tools they need to appeal to these shoppers. “With today’s advanced landscape of data analysis, design capabilities, and production speed, it’s incredibly easy and efficient to adapt to the ever-changing trends.”

Shoppers Study Your Brand Closely

Hendrix begins by explaining the trend big brands are facing. “In certain spaces, shoppers are more interested in pursuing unique products that reflect their values. It’s especially prevalent in ingredient-driven categories like food, beauty, and cleaning.”

As shoppers gravitate toward the smaller brands, larger and established suppliers are feeling the bite. Instead of simply putting out a similar product under their umbrella brand, Hendrix advises tackling the uniqueness head-on. “To capitalize on this,” she says, “rather than releasing another new version of an already established product, larger brands should consider rolling out different varieties and innovations as completely new brands.”

Executing this solution, Hendrix shows, is a win-win for the supplier and the retailer. “By doing this, they’ll be able to cater to a new audience while not alienating their existing customers. They’ll also help retailers deliver on key strategies. Plus, they can offer retailer-exclusive brands.”

Next Step to Your Next Brand Connection

Ready to win your shoppers back? You don’t have to do it alone! If you’re thinking ofAre Niche Brands Killing the Big Names? creating a smaller, niche brand in your line, partnerships can create fresh ideas. Companies like Saatchi & Saatchi X bring new solutions to suppliers every week looking for innovative ways to connect with today’s shoppers.

“A branding agency may seem like the smart place to go for this kind of work,” Hendrix concludes, “but consider working with  someone who knows shopper strategy and how to execute against it. You may be surprised with what you get!”

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