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Private label gains in Europe Private label is becoming even more popular with Europe’s shoppers. Retailers are responding with bigger own brand programs featuring innovative new products and greater value. Market share for retailer brands advanced in 14 of the 20 countries tracked by Nielsen. For the first time, private label accounts for at least 40% of all products sold in a total of five countries. The gains for retailer brands came in the western national markets such as France, Germany, Spain, The Netherlands and Belgium, but were especially strong in emerging retail markets such as Poland, Hungary, Slovakia and Turkey. This growth is creating a solid foundation for more growth as retailing matures in these countries.
Private label’s long-term future appears especially strong. The Ipsos MORI research found strong support for private label among younger shoppers. These shoppers, aged 16-34, are more frequent purchasers of retailer brand products and have a greater awareness of them than middle-age and older shoppers. Other key findings on consumer attitudes include:
Both the Ipsos MORI research and the Nielsen sales data document how popular private label is today in Europe and indicate that the future growth is going to be greater than anyone expected. |
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WHAT ARE PRIVATE LABEL PRODUCTS? Private label products encompass all merchandise sold
under a retailer's brand. That brand can be the retailer's own name or
a name created exclusively by that retailer. In some cases, a retailer
may belong to a wholesale group that owns the brands that are available
to only the members of the group. WHAT PRODUCTS ARE SOLD AS PRIVATE LABEL?Major supermarkets, hypermarkets, drug stores and discounters today offer almost any product under the retailer's brand. Private label cover full lines of fresh, canned, frozen, and dry foods; snacks, ethnic specialties, pet foods, health and beauty, over-the-counter drugs, cosmetics, household and laundry products, DIY, lawn and garden, paints, hardware and auto aftercare. WHAT ARE THE ADVANTAGES OF PRIVATE LABEL? For the consumer, private label represents the choice and opportunity to regularly purchase quality food and non-food products at savings compared to manufacturer brands, without waiting for promotional pricing. Private label items consist of the same or better ingredients than the manufacturer brands, and because the retailer's name or symbol is on the package, the consumer is assured that the product meets the reatiler's quality standards and specifications. WHO MAKES PRIVATE LABEL? Manufacturers of private label products fall into three general classifications:
A UNIQUE ORGANISATION FOR A UNIQUE INDUSTRY The private label business is unique. It has it's own needs and objectives. That's why there is a trade association that serves the industry exclusively. Founded in 1979, the Private Label Manufacturers Association is the international trade organisation dedicated to the promotion of private label brands. With offices in Amsterdam and New York, PLMA represents more |
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The latest market share gains confirm earlier consumer research conducted for PLMA by Ipsos MORI, the well-known public opinion consultancy. The research, based on polling more than 3,000 shoppers in France, Germany and Great Britain, found that the consumer’s connection to retailer brands extends far beyond the issues of price, economic conditions and retail format. While each of the three countries has a very different retailing model, private label is growing in all of them. 
than 3,200 manufacturers and suppliers worldwide, ranging from companies that specialise in private label to those that produce private label products in addition to their own manufacturer brands. PLMA offers trade shows, programmes, and services that are specifically designed for the industry.