Private Brand around the World

carrefourgroup

This is a great article from Neilsen’s World View:

Store Brand Success Around the World
A Global Interview
Consumer Insight editors recently sat down with Nielsen business leaders to get their perspective on store brand performance and trends around the world. Participants in the store brands roundtable included:

Mitch Barns—President, Greater China
Christophe Cambournac—President, Consumer Asia Pacific, India, Middle East and Africa
Patrick Dodd—President, Consumer Europe
Arturo Castro Garcia—President, Consumer Latin America
John Lewis—President, Consumer North America

During past recessions, store brands exhibited fast growth versus branded offerings. Is this same pattern occurring in your region? What factors do you see driving store brand trends?

Store brand growth differs dramatically by region, and sometimes by country within region. In the five major European markets (UK, Germany, France, Spain and Italy), store brands are more established and holding their own, taking between 25-33% of value sales from February 2008-2009. While leading brands are holding steady in terms of market share, expect higher margin store brand goods to garner more shelf space from retailers hungry for returns.

“To protect prime facings, manufacturers will need to put forward their most creative in-store marketing levers and tools. While some real estate prices are dropping, retail “shelf space” will continue to come at a premium.”  Patrick Dodd, President, Consumer Europe

In the U.S., store brands are gaining ground as consumers seek to stretch budgets in tight economic times, and retailers support profitable store brand initiatives. Every demographic segment is looking for deals by moving to store brands or shopping value channels. Recognizing that its store brand programs were under-developed relative to other retailers, powerhouse Walmart will be bringing its marketing muscle to store brands, actively promoting its Great Value label.

In more developed Asia Pacific markets such as Australia, store brands enjoy a 25% share of sales. Conversely, other countries in the region with limited modern trade offer fewer store brands. Store brands follow Western retailers as they enter a market and local retailers are quick to follow suit with their own store brand lines. Thailand is a great example, where Carrefour recently launched an ad campaign exclusively featuring store brands.

Read the entire article



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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.