ClickZ Household Newsletter - 12.19.2024

PLUS: Costco's e-commerce blueprint to drive 13% growth in Q1 2025

Author

Priscilla Soedarpo
December 19, 2024 • Estimated Reading Time: 6 minutes

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Welcome to ClickZ Household, your essential newsletter for home and household products e-commerce professionals.

This will be our last edition of 2024 so on behalf of all the ClickZ team, we wish you a Happy Holiday period and we’ll see you all again in the new year! 🎄

Sector Spotlight 🎥

Target

Walmart Bettergoods and Target Dealworthy are making waves in the private label sector, capturing the attention of budget-conscious consumers. According to Numerator’s report, nearly every U.S. household has purchased a private-label grocery item in the past year, with health and beauty products following closely. These brands are not just gaining traction; they are leading the charge as the fastest-growing private labels, with Bettergoods reaching 9% and Dealworthy 6% of U.S. households. This trend underscores a strategic shift in consumer behavior, favoring cost-effective alternatives.

Private labels are thriving, particularly in club retailers, where they account for 33.9% of sales. Despite a slight decline in some categories like home and garden, grocery items have seen a modest increase. Aldi and Trader Joe exemplify this trend, with private labels constituting the majority of their sales. In contrast, Amazon’s private label sales remain minimal, highlighting a unique market dynamic.

The food industry is poised for further growth in private labels, with nearly half of shoppers planning to increase their purchases. This shift presents a golden opportunity for marketers to capitalize on evolving consumer preferences. The data-driven insights reveal a landscape ripe for strategic innovation, urging marketers to harness these trends for competitive advantage. The irony lies in the challenge for name brands to maintain relevance amidst this private label surge.

Costco Q1 fiscal 2025 saw a robust 13% growth in e-commerce sales, driven by hardware, sporting goods, and home furnishings. The launch of its retail media network marks a strategic expansion, offering significant growth potential. Memberships rose, with executive members contributing 73.1% of worldwide sales.

Molson Coors is enhancing its integrated business planning (IBP) strategy by implementing intelligent planning with o9 Solutions. This initiative aims to improve forecast accuracy and market responsiveness by integrating commercial, supply chain, and finance planning. The move aligns with industry trends, as other companies also adopt advanced IBP strategies.

Hostess

Hostess has unveiled a refreshed logo and packaging to modernize its brand and attract new consumers while engaging current fans. The update includes a playful font, brighter colors, and enhanced product photography, emphasizing the joy and quality of Hostess snacks. This strategic move aims to boost brand perception.

Influencer Corner 📣

Marketing Week on LinkedIn: We are carrying on with our own examination of our favourite Christmas ads

Next up, Content and Social Media Manager: Georgie Plant shares why Shelter's ad, rose to the top for her:

Shelter's 2024 Christmas ad, "World of Our Own," was the first ad in a while that didn't leave me grappling for the skip feature. You often forget that ads at Christmas time aren't all the latest treats or deals of expensive beauty products. Sometimes, the fact that it's Christmas, actually doesn't make a difference to people's lives.

For me, the best ads are the ones that provide a subtle emotional gut-punch (that preference may perhaps needs to be examined elsewhere by a professional, independent body). It's equal parts a charming look into a close family unit, and devastating when the fear of their situation bleeds through the screen.

Barry Hott on LinkedIn: Do your ads pass the “So what?” test? 🤔

I got a lot of great questions about the “So what” test in my LIVE webinar this Tuesday.

The first moment of an ad is crucial. That’s what I teach, what I tell people, what I hammer into my teams.

If an ad fails, I go back to analyze the performance and the ad concept, and I ask myself, “What was the first moment? Did we lose them on the ‘So what?’ test? When did they say ‘so what?’

Optimization Hub ⚙️

US consumer optimism in 2024 is high, yet spending remains cautious, especially in discretionary categories. Despite economic confidence, consumers prioritize financial stability, with many trading down for value. This trend reflects a shift towards mindful consumption, highlighting opportunities for marketers to align with evolving consumer priorities and strategic insights.

TikTok ads require strategic optimization for success. Key steps include defining objectives, refining audience targeting, enhancing ad creativity, and utilizing automated bidding. Additionally, adjusting ad placements, retargeting, and leveraging advanced features are crucial. Continuous testing and alignment with TikTok trends ensure maximum ad performance and brand visibility.

Performance marketing in 2025 will focus on strategic use of AI, first-party data, and personalized engagement to enhance customer loyalty and efficiency. As costs rise and effectiveness declines, marketers must prioritize creativity and strategic value. Agencies face pressure to adapt, while skills in strategy and technology become increasingly vital.

Influencer Partnerships

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Affiliate Marketing

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