Surfing brands and brands with ‘yum’ in their name

OTC brands are one of the fastest growing categories in the food retailing industry, but they still haven’t caught up with the rapidly expanding luxury category, according to the latest quarterly sales data from Euromonitor.

The category now accounts for about 3 per cent of all U.S. grocery sales, and it’s growing faster than any other segment, outpacing clothing and footwear, according the firm.

Surfing brands account for the majority of OTC retail sales, with about 70 per cent, according Euromonitors, while luxury brands make up the remaining 15 per cent.

The top 10 OTC retailers include Banana Republic, Whole Foods, Walmart, Amazon and Zara, which account for about 85 per cent and 74 per cent growth respectively.

While the OTC categories are growing, it’s still a slower pace than the luxury category and a long way from overtaking it, according Andrew Leach, senior research analyst at Euromoncer.

He noted that many of the top brands in the luxury space are still developing and experimenting, while some of the emerging brands are starting to show promise.

He also noted that luxury brands haven’t had to invest much in marketing to get their products noticed, and are not as willing to jump in and buy the most expensive items at the peak of the trend.

The OTC category has already surpassed the luxury segment in terms of sales growth, but Leach says the next phase of growth will be even more challenging.

The OTC sector is expected to grow 10 per cent this year, he said.

There are still plenty of big retailers that don’t have much experience selling OTC products, he added.

The consumer-facing category of Otc retailers have been struggling to keep pace with the rise of luxury brands.

In addition to the huge retail brands that dominate the market, there are also several smaller retail brands like Gap, Target, Walmart and other smaller mom and pop shops that aren’t considered luxury brands at all.

For example, Gap has seen its market share drop by about 20 per cent since the end of last year, while Target’s market share is down by 30 per cent over the same time period.

The Gap store has also seen its popularity drop as well, according a report from Euromoney.

While most retailers are starting off small, Leach said that a big brand can start selling their products directly to consumers.

The smaller retailers need to focus on finding ways to stay competitive and stay relevant.

He said it would be difficult to replicate the luxury retail market because there are so many competitors in the category, so it will be very difficult to stay ahead of them.

In the meantime, Leak said there are still some big brands that can still compete in the Otc category.

“I think there are a few brands that are able to survive the growth curve, and they are brands like Banana Republic and Costco that have really proven themselves over the last several years,” he said, noting that he thinks the category has been around for a while and is growing fast.