E-commerce and data insights driving growth in the private label segment, says Director, Retail Holdings, LuLu

Gulf News

17-02-2025

Gulfood 2025 spotlights pioneering developments across the food and beverage landscape. In this dynamic environment, private labels — once seen merely as cost-effective alternatives — are evolving into sophisticated competitors that often rival top national brands. Could you give us an overview of this transformation?
Over the past few years, the Gulf region's food and beverage sector has seen remarkable growth, and private labels have taken the opportunity to prove they can offer quality and innovation on par with, or exceeding, well-established names. By incorporating technological advances, data analytics, and e-commerce capabilities, private labels are now redefining consumer perceptions.
At LuLu Hypermarket, for instance, we leverage digital tools and market insights to upgrade our offerings, ensuring our products remain fresh, convenient, and competitively priced. You've mentioned e-commerce as a driver of private label success. How is the Gulf region's e-commerce market shaping this growth at LuLu?
The Gulf region's e-commerce scene is booming, particularly with busy lifestyles creating demand for convenient, at-home purchasing. LuLu uses dedicated online platforms to highlight our private label lines — ranging from pantry staples to ready-to-cook meal kits — so customers instantly see these products when they browse.
We've also refined our search placement, added promotions, and simplified navigation to capture casual browsers. Coupled with strategies like product bundles, cross-promotions, and loyalty rewards, we're transforming one-time buyers into repeat, loyal customers. Data analytics appears to play a critical role. How do you use it to refine private label offerings?
Data is crucial in understanding what resonates with consumers. At LuLu, we track popular items — particularly during peak seasons — and adapt our line-up accordingly. Our Happiness Loyalty Program consolidates data from both online and in-store purchases, revealing recurring consumer behaviour.
By consistently analysing this information, we can decide which products need tweaking, which ones to discontinue, and where to introduce fresh lines — like our LuLu Goodness range of healthier options. Many Gulf consumers still enjoy visiting physical stores, especially for fresh items. How do you merge online and in-store experiences?
We've adopted an omnichannel strategy. A shopper might discover a LuLu-branded energy bar through our e-commerce website, then test it in-store with a discount, and finally reorder via our app. Every step is linked through our Happiness Loyalty Program, ensuring consistent points accumulation and relevant recommendations. How do you leverage social media for private labels?
We collaborate with local influencers, chefs, and nutritionists to showcase our LuLu ready meals or LuLu Goodness snacks, presenting them as trend-focused and high-quality choices. This not only generates credibility but also counters any lingering misconceptions that private labels are low-quality. Instead, consumers see firsthand how our products fit seamlessly into healthy and convenient lifestyles. Could you touch on the new technologies you foresee significantly impacting private labels in the Gulf?
AI-driven recommendations can personalise product suggestions based on past purchases or dietary preferences, while subscription models like curated boxes lock in repeat business and encourage people to try new lines. Even more exciting are VR and AR, which can bring immersive experiences online. Imagine walking through a digital grocery aisle or watching an interactive cooking demo from home.
These innovations merge the informative depth of e-commerce with the sensory appeal of in-store shopping. Finally, as private labels continue to shed the budget label and step into the spotlight, what's next?
We're witnessing a genuine shift in consumer mindsets, driven by data-backed personalisation, robust e-commerce platforms, and strong influencer partnerships. For LuLu, this means consistently enhancing our omnichannel engagement and exploring forward-thinking technologies. The ultimate goal is to deliver value, quality, and convenience on par with national and international brands — or even surpass them.
With private labels poised to capture a larger share of the market, the future is about broadening horizons: better products, smarter strategies, and an unwavering focus on the evolving needs of Gulf consumers.
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