Price Premia of Brands over Private Labels differ substantially
The examination of national brand (NB) prices relative to their private label (PL) peers in 1100 categories across 16 countries reveal some surprising insights. As expected, national brands on average charge higher prices than private labels – but this premium differs substantially: In roughly one third of all categories, the premium is below 50%. In another third of all cases, the asking price for the average brand is between 50 and 100% higher. A large price premium is less frequent: In 10% of all categories, brands charge more than three times the average PL price. Categories with such an extreme price differential are least likely to be food categories (2%), and much more likely to be found among beverage (10%), household (9%) or personal care (18%) categories.