Is the Party Ending for National Brands?

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.

Is the Party Ending for Private-Label Package Goods?

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.

Read the entire article.

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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.