Private Brands Promote Competition

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The Phoenix Business Journal features this article on a study from Arizona State University Private Brand and overall savings for shoppers. Not surprisingly the study found that Private Brands help shoppers save money

ASU study: Generics promote competition

A study conducted by a group of Arizona State University professors reveals that generic or private label supermarket brands can promote overall savings for shoppers.

Professor Timothy Richards is the Marvin and June Morrison Chair of Agribusiness and Resource Management at the W. P. Carey School of Business. Richards and several colleagues conducted the research, which is published in the Journal of Agriculture and Resource Economics. The research shows that even if a generic or private label brand isn’t a top seller, it serves as an incentive for lower prices overall in that category.

“Consumers benefit because the whole idea is for retailers to provide a value option to customers. Also, when grocery stores offer these competitive store-brand products, it forces the brand-name companies to lower the wholesale prices they charge the grocery stores. Part of the savings is then passed on to the customers who buy the brand names,” Richards said in a statement.

Sales of private label goods account for almost one quarter of all consumer spending on food, beverages and personal care items, the study further shows. And the more similar a generic product is to the brand name offering and the closer it is on the shelf to the product, the better sales are.
Read more: ASU study: Generics promote competition – Phoenix Business Journal

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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.