Friday, July 31, 2015

POPULARITY OF PRIVATE LABEL KEEPS GROWING
The latest market share data shows that the popularity of private label continues to spread across Europe. Retailer brands now account for at least 30% of all products sold in 15 countries, the greatest number ever, according to Nielsen data compiled for PLMA’s 2014 International Private Label Yearbook.
Of the 20 countries tracked by Nielsen in 2013, 16 posted volume market share gains. The biggest percentage increases were made by Sweden (+5.1 points), Finland (4.0 points), Poland (+3.1 points) and Slovakia (+2.7 points).
Three countries—Sweden, Finland and Czech Republic—crossed the 30% market share line last year for the first time. The number of countries achieving 30% share has been rising steadily. Back in 2011, only 10 countries made it. In 2012, the number climbed to 12.
Private label continues to account for more than half of all products sold in Switzerland (53%) and Spain (51%). Both countries showed market share gains in volume and value. In five countries—United Kingdom (45%), Portugal (45%), Germany (44%), Belgium (41%) and Austria (40%)—private label now accounts for at least four of every ten products sold. Market share for retailer brands also posted gains in Denmark, Norway, Hungary, Turkey and Italy.
Private label accounts for more than three out of every ten products sold in France, nearly three out of ten in The Netherlands and over 20% of products sold in Greece.
Retailer brands are achieving a dominant status in some store departments. Private label represents more than half of all paper and hygiene products sold in 11 countries, frozen products in 10 countries and pet products in nine countries.
Private label can expect still greater market share growth in the year ahead based on a new study of more than 10,000 consumers in 14 countries commissioned by PLMA, entitled "Today's European Shoppers".
The study shows that private label plays a fundamental role in the lives of shoppers across Europe and market share will continue to expand. Forty-six percent (46%) purchase them "frequently." In the year ahead, one in four believe that they will buy a larger amount of own brands than currently. Even when the economy gets better, consumers say that they will stick with private label: eight in ten said that after the economy improves they would not stop purchasing own brands.
WHAT ARE PRIVATE LABEL PRODUCTS?
Private label products encompass all merchandise sold under a retailer's brand. That brand can be the retailer's own name or a name created exclusively by that retailer. In some cases, a retailer may belong to a wholesale group that owns the brands that are available to only the members of the group.
WHAT PRODUCTS ARE SOLD AS PRIVATE LABEL?
Major supermarkets, hypermarkets, drug stores and discounters today offer almost any product under the retailer's brand. Private label cover full lines of fresh, canned, frozen, and dry foods; snacks, ethnic specialties, pet foods, health and beauty, over-the-counter drugs, cosmetics, household and laundry products, DIY, lawn and garden, paints, hardware and auto aftercare.
WHAT ARE THE ADVANTAGES OF PRIVATE LABEL?
For the consumer, private label represents the choice and opportunity to regularly purchase quality food and non-food products at savings compared to manufacturer brands, without waiting for promotional pricing. Private label items consist of the same or better ingredients than the manufacturer brands, and because the retailer's name or symbol is on the package, the consumer is assured that the product meets the reatiler's quality standards and specifications.
WHO MAKES PRIVATE LABEL?
Manufacturers of private label products fall into three general classifications:
  • Large manufacturers who produce both their own brands and private label products.
  • Small and medium size manufacturers that specialise in particular product lines and concentrate on producing private label almost exclusively.
  • Major retailers and wholesalers that operate their own manufacturing plants and provide private label products for their own stores. 

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