But the core challenge is strategic, in Lidl’s approach to brands. Lidl needs to treat private brands like brands, and also strengthen its overall brand to do more work for the business.
Private brands are brands. They take investment to build, sophistication to brand effectively, and time to gain traction. Lidl’s packaging and branding signal “this product is just a leading brand substitute” to shoppers, rather than trying to establish its own brand identity and its differentiated benefits.