An intriguing article from advertising trade magazine stalwart Adage who continues to be hopeful for the reemergence of now faded national brands and their corresponding ad spend. Perhaps the emergence of retailers as brands and the corresponding support of the brands they own, Private Brands will change their tune.
Private-label shares have leveled off after a 1.1 percentage-point gain last year and a gain of more than 2 percentage points since late 2007, according to Nielsen data from Sanford C. Bernstein, the biggest one-year jump in decades. Indeed, in household and personal care, which had been seeing private-label gains faster than food, store-brand shares have been essentially flat since September and are down 0.3 percentage points from October.
That’s the good news for brand marketers. The bad news is, so far, they’re largely staving off private label by reducing price gaps. That comes from a combination of the brand marketers cutting prices and private labels raising them as they catch up with hikes the branded players took a year or more ago, according to reports by Bernstein and Consumer Edge.