Evolving Private Brand Strategies Consumer Choices, and the Future Impact

Grocery cart -Reportlinker.com announced this week that a new market research report is available in its catalog:  Evolving Private Label Strategies, Consumer Choices, and the future impact on Food Brands and Private Labels

Product Synopsis
Private label strategies are evolving from offering value and tiered product ranges to meeting a greater variety of consumer needs. This report tracks the latest evolution of private label strategies and their impact on retailer and manufacturer strategies, from mature private label markets in Western Europe and North America to the emerging markets in Asia and Latin America. In particular, the report provides details on private label development in packaged food.

Introduction and Landscape
The evolution of private label strategies across the world means both retailers and manufacturers need a new playbook in order to make the most of new and emerging opportunities in food retail. This report offers a comprehensive study of private label growth strategies and brands’ defense strategies, and also highlights the key countries, sectors in packaged food, and consumer groups where private label is gaining ground.

What is the current market landscape and what is changing?
Private labels have evolved beyond a “good, better, best” offering to target a greater number of consumer needs and price points. Meanwhile, private labels are also gaining ground in emerging markets, as multinational retailers adapt their best practices to the fastest-growing food markets worldwide. Development is key as marketers need to react to these trends or risk losing ground competitively.

What are the key drivers behind recent market changes?
Private labels have improved their targeting of specific consumer needs; in more developed markets, ‘value’ is giving way to ‘quality’ and retailers are adjusting their portfolios to enlarge and rebrand standard private labels. Meanwhile, in emerging markets, retail consolidation and the entry of multinational retailers into developing countries is driving private label penetration.

Key Highlights
Spain and the UK lead private label, with a penetration rate of nearly half the grocery market. At the other end of the scale, Indonesia, Egypt, and China all have private label penetration at less than 5% with some countries having virtually no private labels. However, across all channels, private label in food remains low; the highest penetration region is Western Europe, where private label accounts for a 14.7% market share by value.

The five stages of private label maturity are: first, the introduction of value products to drive price-based switching; second, the creation of a price architecture to drive trading up; third, the diversification of the product offering; fourth, consolidation and reorganization of the offer; and fifth, brand building.

Retailers are placing a greater focus on aligning private label ranges with shopper missions, such as through products that are exotic and nutritious, those which all fit under a specific calorie count, or the fast importation of restaurant trends into meal ranges.

The most effective strategies to adopt depend on the brand in question, and the maturity of private label competitors in the sector and country in which the brand is competing. The options range from targeting premium niches that do not support large numbers of SKUs to targeting opportunities outside the supermarket channel. Introduction, methodology and definitions Private label hotspots Deep dive: who eats private label food? Evolving private label architecture and brand strategy Private label growth Private label defense Case studies Aligning private label strategies with consumer targets the future of private label Appendix

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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.