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| Assessing and Fighting the Private Label Threat in Europe: The impact of pricing, saturation and the recession on private label growth |
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| In recent years, sales of Private Label goods have been growing faster than those of branded alternatives. Between 2005 and 2007, sales of Private Labels have grown at an annual average rate of 4.5% to reach M36bn, compared to 1.5% for branded items. Improved product quality has helped Private Label products to take market share from National Brands, and this trend is poised to continue in the future. The uncertain economic climate is set to enhance the appeal of Private Label goods to cost-conscious consumers, increasing the need for effective competitive strategies amongst branded products. ‘Assessing and Fighting the Private Label Threat in Europe’ is a new report that evaluates the impact of the recent economic downturn upon Private Label development and consumer behaviour. The strengths and weaknesses of Private Label and branded products are examined using analysis from 50 product categories to measure the performances of manufacturer food, drinks and personal care brands. The drivers and resistors to Private Label development are identified and cross-country comparisons are provided in a regional analysis that highlights European level trends. This report also provides actionable recommendations for both manufacturers and discounters to counteract the threat of Private Label penetration and implement the most effective pricing strategies.
Published: May 2009 - Europe. |
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