In this episode, meet Lauren Fernandes, Global Director, Thought Leadership for Nielsen IQ, joins the podcast to share the powerful insights for retailers and brand owners from their 2022 Brand Balancing Act, the global implications, and lessons for retailers in Canada.
Welcome to The Voice of Retail. I'm your host Michael LeBlanc. This podcast is brought to you in conjunction with Retail Council of Canada.
In this episode, meet Lauren Fernandes, Global Director, Thought Leadership for Nielsen IQ, joins the podcast to share the powerful insights for retailers and brand owners from their 2022 Brand Balancing Act, the global implications, and lessons for retailers in Canada.
Thanks for tuning into this special episode of The Voice of Retail. If you haven’t already, be sure and click subscribe on your favourite podcast platform so new episodes will land automatically twice a week, and check out my other retail industry media properties; the Remarkable Retail podcast, the Conversations with CommerceNext podcast, and the Food Professor podcast. Last but not least, if you are into BBQ, check out my all new YouTube barbecue show, Last Request Barbeque, with new episodes each and every week!
I’m your host Michael LeBlanc, President of M.E. LeBlanc & Company & Maven Media, and if you’re looking for more content, or want to chat follow me on LinkedIn, or visit my website meleblanc.co! Have a safe week everyone!
I’m your host Michael LeBlanc, President of M.E. LeBlanc & Company & Maven Media, and if you’re looking for more content, or want to chat follow me on LinkedIn, or visit my website meleblanc.co! Have a safe week everyone!
About Lauren
I excel at translating complex and seemingly disparate information into impactful narratives. Integrating data-driven insights with compelling perspective, I am a storyteller and strategic content creator. I have a unique ability to inform, inspire and engage across a broad spectrum of subjects.
I’m a visionary leader, passionate speaker, methodical organizer, caring team player and someone with a proven track record for driving results within my various communities of interest.
About Michael
Michael is the Founder & President of M.E. LeBlanc & Company Inc and a Senior Advisor to Retail Council of Canada as part of his advisory and consulting practice. He brings 25+ years of brand/retail/marketing & eCommerce leadership experience and has been on the front lines of retail industry change for his entire career. He has delivered keynotes, hosted fire-side discussions with C-level executives and participated on thought leadership panels worldwide. Michael was recently added to ReThink Retail’s prestigious Top 100 Global Retail Influencers for a second year in 2022.
Michael is also the producer and host of a network of leading podcasts, including Canada’s top retail industry podcast, The Voice of Retail, plus the Remarkable Retail with author Steve Dennis, Global E-Commerce Tech Talks and The Food Professor with Dr. Sylvain Charlebois. Most recently, Michael launched Conversations with CommerceNext, a podcast focussed on retail eCommerce, digital marketing and retail careers - all available on Apple, Spotify, Amazon Music and all major podcast platforms. Michael is also the producer and host of the “Last Request Barbeque” channel on YouTube where he cooks meals to die for and influencer riches.
Michael LeBlanc 00:05
Welcome to The Voice of Retail. I'm your host, Michael LeBlanc. This podcast is brought to you in conjunction with the Retail Council of Canada.
Michael LeBlanc 00:11
Lauren Fernandes, Global Director Thought Leadership for NielsenIQ joins the podcast to share the powerful insights for retailers and brand owners from their 2022 Brand Balancing Act, a global implications and lessons for retailers here in Canada.
Lauren Fernandes 00:24
For the smaller players, I say that that's really great news, because you know, you might not have been considered before, but today there's this playing field where smaller brands are in the running for more buyer opportunities than perhaps ever before. Yeah, -
Michael LeBlanc 00:39
Right on. All right. So, I interrupted you on your, on your pillars, but I just realized as you're talking, I just wanted. So, I think, I think that was one, I think, (crossover talk), for one of four. So, -
Lauren Fernandes 00:47
So, that was one and four. So, we're at consumer preference, which I mean, I think it speaks to itself that we could talk on and on about just that one aspect, but kind of building from that we move into performance and the importance of benchmarking. You know, your pace for growth relative to other companies, seeing where smaller brands are outperforming or where they're not. And, you know, just highlighting that as an essential exercise.
Michael LeBlanc 01:15
Lauren, welcome to The Voice of Retail podcast. How are you doing this morning?
Lauren Fernandes 01:19
I'm doing well. Thank you so much for having me today.
Michael LeBlanc 01:22
Well, thanks for joining me. I, I, you know, I've been poring through your background and your report so many questions. And it's such a great report. I, I, feel like if I've read it half a dozen times, I still need to go back and read it again. So, I'm really excited to get you on the line.
Lauren Fernandes 01:30
Yeah.
Michael LeBlanc 01:31
It's a you know, it's dense and not it, not in an unapproachable way. But anyway, I, I go on. Where am I reaching you today? Well, part of the world are you in?
Lauren Fernandes 01:47
I am calling in from Toronto in Canada. So, hopefully not too far from you. And -
Michael LeBlanc 01:53
Yeah.
Lauren Fernandes 01:55
Yeah, I'm excited to just delve into some global findings, but also some stuff from right here in Canada, too.
Michael LeBlanc 02:01
Yeah, right on, right on. That's one thing, I really appreciate it, but about the, about the study? Well, let's jump right in and tell us about yourself and what you do for a living and all about NielsenIQ.
Lauren Fernandes 02:10
Absolutely. So, I am a Thought Leader at NielsenIQ, which means I have the pleasure of creating and telling some really cool data driven stories about consumer behavior. So, as a kind of global specialist, I really help synthesize and analyze data from our (inaudible) IQ technologies, really, with the goal to help inform companies and key audiences, like your listeners, about noteworthy consumer trends.
Lauren Fernandes 02:18
And I think that kind of dovetails nicely into, you know, what we do here at NielsenIQ. So, we're leaders in the space of consumer and retail measurement. So, we use cloud technologies, and you know, our growing global footprint, I think we cover about 90% of the world's population. So, we use our data resources to really provide a truly comprehensive view of consumer and shopper behaviors.
Michael LeBlanc 03:08
And so how did you get into this? I see you've got a degree from Western? And, and did you always want to be in this kind of work? Or did you find your way into it? Did you always love numbers? Or did you always love storytelling? Which is a big piece of what I'm sure you do? Tell me about that.
Lauren Fernandes 03:23
Yeah, great question. So, I actually at Western, I studied Consumer Behaviour Research in particular. So, it was a very kind of specific path, or may have, I have always been kind of interested, of course, in the data and numbers that go into kind of research proposals and research work, but I just love the applicability of kind of researching ourselves as consumers, if that makes sense.
Lauren Fernandes 03:39
So, understanding what goes into a shopping occasion purchase decision, how to build effective marketing, the psychology behind kind of appealing to consumers and meeting demands that kind of continually shift as things happen in the world. So, I think, to me, it was, like kind of a perfect melding of science and also kind of personal interpersonal relations and, and understanding people. So, two of my favourite things all kind of combined into one.
Michael LeBlanc 04:16
Right on. Now, you have a global role, but you're based in Toronto. Is that that's not entirely common. I don't come across that all that much. But tell me, tell me about how that evolved. And, and you just a little bit more of the scope. I know Nielsen is a global company. It is global research, but you're based here, but you work globally. Talk about that for a few minutes.
Lauren Fernandes 04:35
Yeah, absolutely. So, it kind of evolved over time, actually. So, I kind of started more in the Canadian analytics space working with a lot of our Canadian clients actually solving, kind of, consumer and shopper business questions in particular.
Lauren Fernandes 04:48
So, I always like to use the example of a, like, a mom buying her son deodorant where, you know, the consumer is very different from the shopper, and how, you know, companies might strive to, kind of, market to both of those groups effectively. So, problems like that, that's kind of where I started at NielsenIQ.
Lauren Fernandes 05:16
And then, I guess, you know, through a couple of, kind of collaborative client projects that involved working with some US metrics, and then just kind of over time was curious to expand the scope beyond North America. Blessed to have a company that also had, you know, the legs to kind of exist in over 100 markets, I was just kind of lucky to work on a couple of cross-functional client projects that grew to my current role today, where I work in kind of a thought leadership space, not just for Canadian consumers, but you know, across Asia, Africa, Middle East, and Europe, You know, we kind of synthesize metrics from all around the world to kind of make sense of what's happening with consumers.
Michael LeBlanc 05:59
It feels, it feels like your story is a little bit about the harder I work, the luckier I get. But let's, let's, let's leave that part there. Congratulations on that. So, all right, let's dive, let's dive in. Let's talk about this 2022 Brand Balancing Act, study, scope and scale. I think for someone like you, I can't imagine, you know, the pros and cons of the COVID era, the quasi-post-COVID era, the inflation. I can't imagine a more dynamic, and in some ways, interesting time for someone to do the work that you do. But let's, let's, talk about the study itself. What is it, scope and scale? And, and what does it cover?
Lauren Fernandes 06:32
Yeah. So, I mean, it's no secret brands of all sizes, as you said, we're dealing with such unprecedented disruptive change, and like consumers, as well, are reacting in so many unique ways, because we've had so many years of new norms that just, you know, it's almost like it's hard to keep up with the change that's happening.
Lauren Fernandes 06:44
And so, what the study really seeks to do is answer questions around how consumers approach brand decisions. So, how, how do smaller brands, in particular, leverage the opportunities at their disposal. And so, we kind of looked at the spectrum of brand preference, performance, understanding some innovation and how brands, you know, are building differentiated points of view today, to create this really broad report, as those around, you know, 20 different countries worth of insight, and really hinges around a four point strategic framework that I can kind of talk to you about a little later today, I'm sure but. Yeah, so it was, it was something that really seeks to outline the true balancing act that exists today. And then help companies sort through those priorities. And understand the ones that are probably worth juggling in the long term in order to succeed.
Michael LeBlanc 07:53
You know that last point is what I particularly appreciated about the study, because all of us retailers, myself, trying to figure out the difference between consumer behaviours that were just adaptations, right? It's just a weird time in our lives versus, you know, things that are going to stick, right. And -
Lauren Fernandes 08:04
Absolutely.
Michael LeBlanc 08:06
It's hard to imagine, after, you know, three years of this counting, that there wouldn't be some meaningful and more permanent changes, whatever permanent means, in consumer behaviour. Now, this study is, is, is, not a one and done thing. It's a talk about the rolling release of the NielsenIQ 2022 Brand Balancing Act.
Lauren Fernandes 08:29
Yeah.
Michael LeBlanc 08:30.
You know, the full report, and, and then let's get into some of the key takeaways.
Lauren Fernandes 08:31
Yeah, for sure. So, I mean, we recognize that, you know, SMB, small, medium, businesses, in particular, there is some, you know, limited manpower, there are limited budgets, there's always trying to kind of make the most of the resources that small brands have at their disposal. So, that's kind of how we released this piece of content in small segments over the course of the summer. Make things as digestible as possible, but also, you know, full of rich detail that, that can kind of inspire action for, for businesses, (crossover talk).
Michael LeBlanc 09:03
Give some people some I like, I like the, I like the approach, give some people some soak time, right. A lot of data, just soak it in and then okay, then we'll come now that you've got a (inaudible).
Lauren Fernandes 09:11
Give you a couple tidbits to kind of read, socialize casually, you know, because small businesses, you know, you might just have the coffee breaks to kind of read some things in your spare time. And that was kind of the point of this type of approach to a white paper, is to give some digestible nuggets of information. And then you know, next week, we're, we're kind of building to releasing the full report for those who kind of want to take it all in all at once.
Lauren Fernandes 09:22
By you know, essentially, I've, I've kind of mentioned this, but we have a four-point framework that really is, is kind of the entire piece of work in a nutshell. And it's really four basis or guideposts for SMBs to prioritize in the coming months, four years ahead. So, if there's four things you need to take to heart to invest in, to try to and or stand more. It's these four things.
Lauren Fernandes 10:10
So, first is brand preference. So, here, we really lean into data around what consumers want. So, you know, consumer needs have obviously fragmented and so have their reasons for choosing a brand. And so, we kind of took that to heart, just to give one example, you know, four in 10 Canadians consider themselves to be agnostic brand buyers today. So, those are people who, like, don't have a deep-rooted preference to buying small or large. And I think that's actually a really cool opportunity, because that just shows a large portion of our population that are open to persuasion right now. They're kind of swing votes, if you will, that, that, even small, small brands can, you know, have a foot in the door in terms of, kind of persuading those buyers.
Michael LeBlanc 10:51
(Crossover talk). They, they got a, they have a shot at it, right? I mean, -
Lauren Fernandes 10:54
Yeah.
Michael LeBlanc 10:55
It feels like, and I see, I see this in, in your study, maybe you'll also comment on it, as you know, I see numbers about what was it, 34, 40% of consumers that did more brand switching during COVID. I mean, these, you know, for someone like yourself, you're used to seeing 1, 2, 3-point shifts, right. And that's, these triple double-digit things are just there, you know, not to be understated, right, in terms of understanding or trying to understand the, the magnitude of, of the changes of, and the openness to change, right?
Lauren Fernandes 11:25
Completely and I think, you know, one overarching stat that really jumped out to me from the report, you know, 51% of the globe right now, and 40%, within Canada, are consumers who are buying a greater variety of brands than they were before COVID.
Michael LeBlanc 11:40
Wow.
Lauren Fernandes 11:41
So, I think that -
Michael LeBlanc 11:44
That's huge, right?
Lauren Fernandes 11:45
Yes.
Michael LeBlanc 11:46
Risk and opportunity that's, It's a bit of risk and opportunity. Like if you were one of the established entrenched, incumbent brands, (crossover talk), with this, and you know, literally, (crossover talk), -
Lauren Fernandes 11:51
On that share of mind. Yeah,
Michael LeBlanc 11:53
I'll just say wash, rinse, repeat, not to category, put it in any category. But now th,- this, th-, it's a little more of a jump ball moment. Yeah.
Lauren Fernandes 12:01
Absolutely. And like for the smaller players, I say that that's really great news, because you know, you might not have been considered before. But today, there's this playing field where smaller brands are in the running for more buyer opportunities than perhaps ever before. Yeah.
Michael LeBlanc 12:18
All right. So, I interrupted you on your, on your pillars, but I just (crossover talk), as you're talking, I just wanted. So, I think, I think that was one, I think we are at one of four, so that, -
Lauren Fernandes 12:26
That was one of four. So, we're at consumer preference, which I mean, I think it speaks to itself that we could talk on and on about just that one aspect, but kind of building from that we move into performance and the importance of benchmarking. You know, your pace for growth relative to other companies, seeing where smaller brands are outperforming, or where they're not. And, you know, just highlighting that as an essential exercise that, you know, can guide promotional focus and also help companies set achievable sales targets, which, you know, is something that seems, you know, second nature, but can often be overlooked, especially with smaller brands, who might not think that, you know, that type of analysis is within their, their reach.
Michael LeBlanc 13:03
So, something we definitely call out there.
Lauren Fernandes 13:08
Then we kind of move into that third pillar, which is all about innovation. We call it a trend cycle. And this is where we highlight the different trend setting mentalities that exist today, which I think is a really cool kind of space, because our research pointed to just how open consumers are to trying new things. And we kind of position that as a tool of an opportunity to kind of balance the inflationary pressures that we're seeing. So, if you know people are craving and clamouring for new things, you know, use that to balance the pressures you're feeling in terms of people maybe not wanting to kind of push their wallets too, too far these days.
Michael LeBlanc 14:00
Now, you know, I'm trying to, I'm trying to discern, and I've, I've heard it and observed it a little bit. We'll see if it sticks during, you know, more difficult inflationary times, but consumers who say, ‘Listen, I'm still going to spend $1, but instead of buying three things, I'm going to buy one, and part of that is a bit of, I'm looking more for value and for sustainability than I am looking for more things. Do you, you know, it feels, like your, your research kind of supports that?
Lauren Fernandes 14:28
So, it, it's not always a race to the bottom. In other words, (inaudible). Yeah, definitely. And I think, you know, I, I was personally surprised by just that, how pervasive that appetite for new things was, you know, globally, seven in 10 consumers identify themselves as trend leaders or innovation seekers. And so, kind of you bring up that point of how they're going to use that, that $1 they want to spend on. I think it, it, really highlights the importance that you know, despite the pressures of trying to, you know, watch every penny and make sure that we're kind of handling inflation as consumers in the best ways possible.
Lauren Fernandes 14:50
You know, companies, if they can appeal in the right ways with the right attributes with the right kind of desires consumers have for their lifestyles, you know, you can kind of squeeze into that wallet quite easily if you're kind of leveraging the right aspects of innovation appealing to that, that demand for newness, and kind of making consumers you know, feel joyful, and you know, that the purchase is worthwhile. So, there's, (crossover talk), definitely, -
Michael LeBlanc 15:09
A 100%, yeah,
Lauren Fernandes 15:11
I agree. I agree. The fourth one, you know, it kind of relates to bridging to the future. So, once you have kind of thought about the innovative angle that can appeal to appetite for change, how do you kind of take that in the long term with your signature style and standpoint. So, the fourth pillar is all about brand differentiation. So, this is where it's really important for brands to hone in on their, you know, their standpoint, how they connect to the hearts and minds of consumers. So, kind of what we were talking about on, you know, are you aligning to that attribute that consumers are looking for, is that how you're different, and how it's, it's kind of that value proposition of how you make your brand stand for more than the price point that it sells for.
Michael LeBlanc 16:31
I u-, I used to draw up kind of a matrix, one axis was relevance, and the other was differentiation, because you, if you know, the perfect sweet spot is your, your, you've got a, an innovation that's highly relevant your (inaudible) places is you're really different, and nobody cares, right? I guess that's where you can, you can run a, a (inaudible).
Lauren Fernandes 16:48
And actually, you know, as I was kind of working with this piece of research, you know, one major risk, I personally always call out is relevance, because I think, you know, what is most relevant or desired is changing so rapidly, as prices go up, as we kind of shift into this, like post pandemic lifestyle. And, you know, there's so many new changes every day, every month.
Lauren Fernandes 16:51
Continuous innovation, I feel, is just one way that brands can really intelligently keep up with the pace of consumer demand. I think, you know, we had some stats right off of the report here where, you know, according to our base's innovation measurement, in the US, and in Europe, the pace of innovation for small brands is down between 19 to 20% year-over-year, which is huge. That means there's a lot less in terms of new items hitting shelves. And to me, that's, that's a warning signal for smaller brands, because they're probably relying on their existing outputs, to, to stack up to current consumer needs, which may not kind of, you know, equate to one another.
Lauren Fernandes 17:33
So, smaller brands that aren't, you know, keeping up with what's new, if they're taking their foot off the gas pedal, in terms of investing in innovation, you might be pulling back in the wrong area, or at the worst time when consumers really are so dynamic and so craving new things, after (crossover talk), the last couple of years.
Michael LeBlanc 18:19
I, I think, I think it was a, there may be, and we'll see a blip in the data, because I know a lot of retailers, if we think about the retailer element of the ecosystem, they stopped doing new listings, effectively for 18 to 24 months.
Lauren Fernandes 18:24
Yeah, yeah.
Michael LeBlanc 18:26
I mean they, they were, you know, the supply chain issues, and they end just the way they were working. And there's just, it was enough to just keep existing relationships. So, I talked to a lot of smaller brands and said, you know, the phone just did not ring, we could not get a meeting for, -
Lauren Fernandes 18:35
Yeah.
Michael LeBlanc 18:37
You know, during COVID. But then, you know, like, like, you know the, the calendar ticked over to 2022. And the phone just rang off the hook. So, maybe we'll see that as well.
Lauren Fernandes 18:54
Absolutely, (crossover talk), and I, I hope we do because I think, you know, the data from a consumer sentiment standpoint is telling us that the demand is there among consumers. They are that, that appetite is quite strong. So, I, I agree, I really hope that we do see that, that reversal, very soon where, where small brands can kind of reassume their, their role in, in that pace of innovation.
Michael LeBlanc 19:19
Well, let's talk about Canada. So, (inaudible), a global study, but there's some Canadian data, so hone in for us on any insights that were different about how Canadians, specifically, appear in small brands?
Lauren Fernandes 19:31
Absolutely. So, you know, I think, there were, a, a lot of unique kinds of aspects to cover. I think, on the one hand, you know, we, we started off the study kind of looking at how people define a small brand versus a large brand, because, you know, it's such a there's such a myriad of ways to kind of think about it.
Lauren Fernandes 19:43
And from a Canadian standpoint, I think it was really interesting just to set the stage that Canadians define small brands, from their perspective, as companies that are independent, not owned by larger companies. And that was quite a bit higher than the global average. So, to me, that was like the identifying factor.
Lauren Fernandes 19:56
And then, you know, from a sentiment perspective, we also see that, you know, Canadians believe small brands are more authentic and trustworthy. And also, this, this kind of fear of acquisitions in a way where half of, more than half of Canadians feel that small brands kind of lose the essence of who they are once they're bought by a big brand. So, I think, just some really unique ways that Canadians perceive small brands. So, if you are a small brand operating in Canada, you know, owning your kind of story where you come from, your, your independence, you're kind of tied to local consumers, those are things that are likely going to resonate, just given how starkly Canadians feel about those aspects of, of the brand itself.
Michael LeBlanc 21:07
And, and what about the, the influence, the choice part for small brands in Canada, did you learn anything different there?
Lauren Fernandes 21:13
Definitely. So, I think, you know, 14% of Canadians say that they're partial to buying small brands, so they'd be considered within our buyer group that we called exclusive small brand buyers. And then if we add to the mix, those who say they occasionally buy small brands, that goes up to 42%. So, I like to call that the captive audience. So that, to me, is quite a large swath of the population that have at least some preferences to buying small.
Lauren Fernandes 21:21
So, to me, a really key finding that came out of this study, that might be contrary to what some might expect. But, you know, it's not just the big brands that have, you know, a high kind of share of mind among modern consumers today. So, like, you know, 42% of consumers have that demonstrated preference to buying small brands already, which I think is huge for, you know, brands to think about when it comes to how they're investing in, you know, persuading that purchase, they might have more kind of opportunity than they think in terms of kind of winning those, those purchase decisions.
Michael LeBlanc 22:23
Now, since we're, let me ask you this question. You know, you've got, we've got retailers, who would be listening who themselves are fairly large or quite large, but would like to sometimes feature small niche brands, I can think of a lot of examples, does that work as well? Like, do people, is there, this, this segment of people, this cohort of people, they could be walking through a very large retail store, but still be drawn to a niche brand in a certain category they'd never heard of? Is that, is that, can that be the case?
Lauren Fernandes 22:53
Yeah. So, I mean, we looked at a number of different reasons to buy. In this study, we looked at how important each reason was. But I think what was really cool about this analysis, we took those reasons, and layered it against what consumers expect of small and large brands, or what they feel they're known for.
Michael LeBlanc 23:12
Now that's interesting.
Lauren Fernandes 23:15
And for small brands in Canada, supporting local, or being the most interesting or different option, are two of the most highly important and also like highly expected expectations people have of smaller brands. So, I thought that was interesting from a stance of, you know, being more interesting or more different. That means that smaller brands are kind of thought of as some of those like, unplanned purchase occasions where you know, you are just kind of browsing that large shelf set, and you buy the one that stands out to you that, that looks different that has that different point of view, or that, (crossover talk).
Michael LeBlanc 23:54
Yeah, those attributes I, I, I think about though, you know, in a different category, there's some brands of major global brands of let's say, beer, who create a brand, and do the best they can to bury the fact that they own it, and make it feel like it's a craft brand.
Lauren Fernandes 24:17
Yeah.
Michael LeBlanc 24:18
I mean, I, I, are consumers figuring that out, because, you know, you could walk down and, you know, it's not hard for a big global company to just start a new brand a widget and call it something different and, you know, not necessarily put their big, you know, corporate headquarters address on it. Is it, are consumers figuring that out? I mean, that's a, I'm not sure you answer that question in, in the research, what do you think about that?
Lauren Fernandes 24:33
Yeah, I think my personal opinion is that you really have to kind of give consumers credit for what, you know, associations, they're able to actually draw because I think you know, some of the stats even that we talked about on consumers really feeling that small brands kind of lose their essence once they're acquired, or even the fact that you know, 35% of Canadians say they plan to buy more small-, smaller brands in the future. And the reason for that being that they feel those smaller brands are better suited to their needs.
Lauren Fernandes 24:58
I think the stats, like, that they give me reassurance that Canadian consumers can tell the difference in many cases, or they, if they can't, they want it to remain that, that way. Like they don't like to be kind of misled. I think it really boils down to trust and authenticity in many ways. Like, I think a lot of brands might, you know, undervalue the importance of earned trust. And to me if, if you can uphold that, especially as a small brand through multiple different purchase occasions, you know, you're on the track for, for very strong loyalty there. Because I think, you know, for those that believe in and trust your value proposition, they really want that reassurance that, -
Michael LeBlanc 25:49
Yeah.
Lauren Fernandes 25:50
They made the right choice, or that their purchase decision, or their faith was kind of honoured by the brand in the end.
Michael LeBlanc 25:57
Last couple of questions. Let's talk about private labels for a few minutes. So, where does private label fit in all of this, I mean, historically, you've got; A), an opportunity to brand switching, and B), you've got as, as economic challenges start to mount, particularly in certain segments, private labels have a great attractiveness and the private labels themselves, particularly in food have the quality is, has skyrocketed. So, how does all that fit into your calculus?
Lauren Fernandes 26:24
Yeah, I think, well, just generally speaking, private labels, I think, have really kind of broken a lot of barriers in terms of, you know, whether they're, they're truly a trade-off now, or just, you know, a very vi-, viable option.
Michael LeBlanc 26:37
Yeah, yeah.
Lauren Fernandes 26:39
For consumers, -
Michael LeBlanc 26:41
The first option, right. Like, they don't feel like, you know, yeah, there are private labels of different, different strategies and different price points. But you know, (crossover talk), it's for many, -
Lauren Fernandes 26:49
It's less, yeah, it's less of a trade-off. And it's, it's literally, you know, a choice a, a, a very, you know, top priority for many to purchase. And there's some deep-rooted loyalties to private labels, which is really interesting.
Michael LeBlanc 27:10
Yeah.
Lauren Fernandes 27:11
And I think, you know, one thing that came out of this research, in particular was just (inaudible) the way that private labels kind of, can own the space of affordability plus. So, I like to think of, you know, value as kind of two pronged these days. So, you have affordability plus kind of the meaningful differentiation, that is, that is added on top of that, and I think private labels have really done well to operate in that space of, you know, always intrinsically having the, the price sensitivity in mind for consumers, but then offering all of these other benefits that might not have been on the table prior or in the realm of expectation.
Lauren Fernandes 27:40
And for small brands, so Canadians who say that they exclusively buy small brands, I thought it was really interesting. If they were asked, you know, how do you try to save on expenses, a large share of them opt for private labels. So, 29% of small brand buyers buy private labels to save money, and that is quite a bit higher than the global average. So, I think there's a really interesting Canadian interaction, where, you know, small brand, buyers should probably keep their eye on private label, because there's some competitive kind of overlap there were those consumers if they want to save, they're almost most likely to kind of jump to private label in order to try to kind of realize some of those savings.
Michael LeBlanc 28:34
Interesting, interesting. Well, listen, last question. It's a little bit unfair, because it's a big report, a big scope. Any kind of last words of advice, and, and let's say words of advice for the small brand owners, and then words of advice for the retailers. So, if you could, you know, it's kind of impossible to sum up all this in a one or two words of advice, and I'm sure people get in touch with you after but would, what would that be?
Lauren Fernandes 28:58
First and foremost, for small brand owners, you know, don't be overwhelmed by the sheer volume of opportunities out there. You know, really kind of use this framework to create this list of four kinds of go gets that you need to kind of attack. And, you know, use the resources you have as, as wisely as possible.
Lauren Fernandes 29:18
You know, we have a platform called Visor, that allows you to pretty much create the, the insights you need to back this framework specific to your business quite easily. And so, if you kind of think about it, some of the things that I talked about today, I think, you know, that two speed world of trying to own affordability plus differentiation is really important, because you know, price is important.
Lauren Fernandes 29:30
But as you know, recessionary conditions kind of wage on your unique stance in the market is really what will help build that long term loyalty. I think for retailers and small business owners, trust and authenticity, again, is huge. So, knowing what consumers expect of you upholding those expectations, and ultimately, like remaining authentic to them, even in the face of acquisition or disruption. That's, again, another key factor to scaling long term growth.
Lauren Fernandes 29:26
And I think lastly, and again, I think it applies to both retailers and, and brands, balance and fit inflation and this pressured environment we're in with the known appetite for innovation that our study presents. So, continue to invest in innovation, highlight what's new or innovative about your brand, because yes, consumers are definitely worried about their bottom line, their expenses. But because of how they're craving new and different things, you can kind of use that as an entry point to kind of balance the price sensitivity and still try to kind of find your place into their shopping basket, if you will.
Michael LeBlanc 30:59
So, if listeners want to get in touch with you, are you a LinkedIn person? And if they want to get some of this research, can we make it available, a link in the show notes where to learn more talk about that for a bit?
Lauren Fernandes 31:09
Yeah, absolutely. So, definitely, I am available on LinkedIn. And then just ter-, in terms of this research, I would highly recommend, just bookmark@nielseniq.com/insights. You can find all of our Brand Balancing Act content. We're going live with our full re-, report, our downloadable report. But already, there's a ton of deep dive articles on each chapter of the content that we've been rolling out throughout the summer. So, definitely @nielseniq.com/insights. And you know, to get in on the conversation, check out our NIQ social media pages on LinkedIn, Facebook, Twitter, and Instagram. You can kind of comment back with a lot of the materials we've been sharing, get your thoughts in, and we love seeing those responses and kind of engaging in conversations there.
Michael LeBlanc 31:57
Well, it's been a fantastic discussion. Congratulations on su-, such a great body of work, and (crossover talk), -
Lauren Fernandes 32:04
Thank you so much.
Michael LeBlanc 32:08
Continue to keep, keep an eye on. It's been a great discussion, and we've covered a lot of ground. So, listen, thanks for being on The Voice of Retail podcast. It is a real pleasure to meet you. I wish you continued success and have a great rest of your day.
Lauren Fernandes 32:16
Absolutely. Thanks so much, Michael.
Michael LeBlanc 32:18
Thanks for tuning into this special episode of The Voice of Retail. If you haven't already, be sure and click and subscribe on your favourite podcast platform, so new episodes will land automatically, twice a week.
Michael LeBlanc 32:31
And check out my other retail industry media properties, the Remarkable Retail podcast, Conversations with CommerceNext podcast and The Food Professor podcast with Dr. Sylvain Charlebois. Last but not least, if you're into barbecue, check out my all-new YouTube barbecue show, Last Request Barbecue with new episodes each and every week. I'm your host, Michael LeBlanc, President of M. E. LeBlanc & Company and Maven Media. And if you're looking for more content or want to chat, follow me on LinkedIn or visit my website at meleblanc.co.
Have a safe week everyone.
SUMMARY KEYWORDS
brands, consumers, small, innovation, buy, people, retailers, study, Canadians, Canadian, consumer behavior, global, private label, point, companies, podcast, report, Nielsen, opportunity, IQ