What are the longer term implications of inflation and economic downturn for prices, for Manufacturer Brands and Private Label?
What are the longer term implications of inflation and economic downturn for prices, for Manufacturer Brands and Private Label?
After a recession shoppers begin to upgrade to more expensive products
The financial downturn up to 2013 led to a cheaper average product choice in W Europe – and we know that Private Label gained over this period. Subsequently the balance shifted and shoppers started to up-trade to higher priced products with no growth for PL. This is why investment now is so important.
Private Label share gains are very likely to be long-lasting
If a manufacturer brand increases share, its chances of maintaining a higher share over time are good. For Private Label this probability is much higher – a 70% chance even after 10 years. So once lost to Private Label, share is very difficult to regain. Another reason for continued investment in your brands.
Private Label buyers are now less likely to consider brands
Brand buyers are now just as likely to consider a PL option as they were in 2013. But PL buyers are now less likely to buy a brand. Another sign that investment in brands is key.
