GROWTH & SUCCESS
Throughout Europe, private label is winning the loyalty of more and more consumers every day. According to a research study of seven countries conductedfor PLMA by MORI, the well-known public opinion consultancy, private label has achieved unprecedented acceptance with shoppers, who say that they are now more aware of private label and plan to increase their purchases of them.
The largest increases in the percentage of consumers who are more aware of private label were posted in the United Kingdom, Spain and France. Moreover, MORI reports that increased awareness is leading to more purchasing. The biggest gains in the percentage of consumers planning to increase their purchases of private label products were in the Netherlands and Germany.
Private label’s long-term future appears especially strong. Young consumers, those up to age 25, are by far the most ardent supporters of private label. Other key findings on consumer attitudes include:
- The quality of products are now virtually equal in importance to price as a factor in the selection of private label.
- Four out of 10 shoppers across Europe would like their supermarkets to carry a wider variety of private label products.
- About one quater of all shoppers' total market baskets are made up of private label products.
- More consumers say they are "less likely" to buy manufacturer brands than those who say they are "more likely" to buy them compared to a year earlier.
In actual sales, private label is increasing its market share in Europe's largest and most mature retail markets as well as in markets with historically low private label penetration, reports ACNielsen in PLMA's latest International Private Label Yearbook.
Both the MORI research and the ACNeilson sales data document how popular private label is today in Europe and indicate that consumers are demostrating that future growth is going to be greater than anyone expected.
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.
Source: www.plmainternational.com
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