What it’s like being #1

Posted by Oliver Koll on Dec 10, 2014

Folie2Comparing the leading brand in a category with its followers reveals several interesting commonalities and discrepancies. Looking at some 6000 brands across Europe shows that the #1 brand in a category typically: has a much larger range with 35% more SKUs than the #2 brand; launches more new SKUs (about 10% of their range in a year is new vs 8% for non-leading brands); and has more buyers. Higher buyer numbers (four times more than the average #5 brand) explains their dominance because their buyers do not buy them substantially more often than do the buyers of the #5 brand.