Private label
Following up on some of the investment points in the New Year’s Resolutions and also with an eye on the potential inflation issues, this week we look at Private Label.
- Private label shares in Western Europe remain stable whilst growth continues in Eastern Europe
Discounter share stability and brand strength during the pandemic have restricted Private Label development in W Europe. But the continued rise of Discounters in E Europe has led to Private Label growth too. Note that PL grows more in categories where PL is already strong (Pick of the Week 47 2021) – don’t let that happen in your categories. - Private label share in a category is not a ‘given’ – relative shares vary significantly by country
Category Private Label shares vary considerably from country to country – even when indexed on the average PL share in each country. Investment in brand trust, value for money, innovation and advertising explain these differences (Steenkamp et al). - National brand new product activity impacts category private label share
Steenkamp at al emphasize 4 key drivers of Private Label share by category – brand advertising, brand trust, brand value for money and brand innovation. Regarding innovation our latest data confirm PL share is lower where Branded innovation is higher.