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Gulf News
17-02-2025
- Business
- Gulf News
E-commerce and data insights driving growth in the private label segment, says Director, Retail Holdings, LuLu
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. Sign up for the Daily Briefing Get the latest news and updates straight to your inbox
Khaleej Times
17-02-2025
- Business
- Khaleej Times
The Digital Revolution: E-commerce and Data-driven Growth for Private Labels
Amidst the Gulf region's rapidly expanding food and beverage market, private labels have gone from being basic, cost-effective alternatives to formidable contenders that frequently compete with — if not outshine — well-established national brands. Bolstered by the surge in online shopping, a strong focus on data-driven insights, and changing consumer expectations, these store-branded products are redefining industry standards. Furthermore, with Gulfood 2025 — the world's biggest annual food and hospitality exhibition — on the horizon, innovators across the sector are eager to present groundbreaking advancements that highlight private labels' rising prominence in this evolving marketplace. This transformation is evident at LuLu Hypermarket, where the private label strategy — led by Shamim Sainulabdeen — demonstrates how the effective use of technology, data, and targeted outreach can turn in-house brands into market frontrunners. E-Commerce as a Launchpad The Gulf's vibrant e-commerce landscape, amplified by the growing demand for convenient at-home shopping, has created an ideal platform for private label expansion. Retailers like LuLu leverage specialised online portals to feature their store-brand products prominently, encompassing everything from pantry staples to ready-to-cook meal packages. Through strategic search results, exclusive promotions, and user-friendly interfaces, these items are becoming more visible — and appealing — to digital shoppers. Turning casual visitors into committed customers involves several strategies. LuLu, for example, offers product bundles that combine complementary private label items at special rates. Cross-promotions demonstrate how switching from major labels to LuLu's equivalents can deliver savings, loyalty perks, and exceptional quality. Further enriched by LuLu's Happiness Loyalty Program, these targeted efforts effectively boost online conversions. Data-driven Personalisation Digital platforms deliver a wealth of insights into consumer preferences, from top product searches to peak seasonal demands. At LuLu, these insights guide the development and promotion of private label offerings. By closely monitoring which items perform best — especially during these peak seasons — LuLu refines its assortment to match consumer needs. A central element of this model is the Happiness Loyalty Programme, which records transactions made both online and in-store. This comprehensive data reveals not only the private label products shoppers frequently purchase but also uncovers new opportunities for product innovation. By continuously analysing user feedback, LuLu tailors offers, expands its lineup (including healthier choices under LuLu Goodness), and gauges how limited-time deals resonate with specific audience segments. The Omnichannel Ecosystem Although digital shopping channels have surged in popularity, many Gulf consumers still value in-person visits — particularly when assessing food freshness and quality. Recognising this, LuLu seamlessly integrates its hypermarket network with its online platform to create a well-rounded omnichannel experience. For instance, a shopper could first see a LuLu-branded energy bar online — potentially via a suggestion from the loyalty programme — then sample it at a discount in-store, and later repurchase it through LuLu's e-commerce website or mobile app. Throughout this process, the Happiness Loyalty Programme remains cohesive, accumulating points and suggesting related products — no matter how or where the transaction takes place. This synchronised approach caters to longstanding shopping traditions while offering the convenience today's consumers expect. It also expands opportunities for promoting private label items through a mix of digital ads, in-store campaigns, and personalised offers. Social Media Engagement With social media usage in the Gulf among the highest in the world, platforms like Instagram, TikTok, and YouTube serve as effective avenues for boosting awareness of private label lines. Retailers like LuLu collaborate with regional influencers, chefs, and health experts to spotlight specific product ranges — ranging from LuLu ready meals to LuLu Goodness (nutritious snacks) — as not only trendy but also trustworthy and of high quality. This approach goes beyond building brand loyalty; it also challenges the assumption that private labels are inherently lower-end choices. By offering visually compelling content and relatable testimonials, retailers are effectively demonstrating that in-house brands can rival — or surpass — the more recognised global names. Emerging Tech, Future Prospects Continuous technological advancements promise fresh opportunities to reshape the private label space: AI-enhanced Recommendations Integrating cutting-edge algorithms into retail platforms enables precise product suggestions, based on dietary needs, past shopping habits, or popular local flavours — boosting interest in private label items. Subscription Models The rise of curated grocery boxes, meal kits, and 'discovery sets' makes it easier for retailers to lock in consistent revenue while helping shoppers discover new products, including private label offerings. VR and AR Experience Interactive Virtual Reality (VR) and Augmented Reality (AR) experiences — such as virtual aisles, hands-on product demos, or online tastings — merge e-commerce's convenience with the tactile appeal of in-store shopping. Conclusion Private labels in the Gulf have moved far beyond the confines of the budget aisle. By employing data analytics, e-commerce strategies, loyalty programmes, and savvy influencer partnerships, these store-brand products have made substantial gains in quality, originality, and popularity.
