Consumers have recently been snapping up private-label goods at grocery and mass retailers. Will this trend last? Only if retailers develop a compelling private-label strategy and operating model. Private labels, or store brands, are having a moment. Early in the COVID-19 crisis, many consumer-packaged-goods (CPG) brands disappeared from store shelves due to panic buying and pantry […]
First off, what do we mean when we say private label? Private label brands are products that are branded and sold by a retailer but manufactured by a third party. Example — Sainsbury’s sell Heinz Beans but also sell Sainsbury’s Basics Beans. In the past, private label brands were considered commodities purchased solely on price. […]
In 1989, private labels or store brands accounted for 65 percent of sales of frozen green and wax beans and for 25 percent of sales of liquid bleach but for only 1.1 percent of sales of personal deodorants. As shown in Table 1, private label market share (in terms of both dollar sales and units sold) […]
You know the old joke: Just because you’re paranoid doesn’t mean they’re not out to get you. In a nutshell, that describes how manufacturers of brand-name products react to competition from private labels. On one hand, manufacturers are right to be concerned: There are more private labels—“store-brand” goods—on the market than ever before. Collectively, private […]