Private labels are emerging as a key strategic lever for retailers, particularly in non-food categories, according to a joint analysis by Boston Consulting Group and Inverto. The research finds that well-developed retailer brands can deliver higher margins, broaden customer reach and strengthen differentiation in increasingly competitive markets.
Consumer perceptions continue to shift in favour of private labels. In Germany, 66% of shoppers now choose retailer brands for their value for money, with independent product tests in some non-food categories rating private labels on par with, or ahead of, leading manufacturer brands. Younger consumers are proving especially receptive, driven in part by social media trends such as “dupe” content, which has normalised alternatives to premium brands.
BCG partner Marcus Kroth highlights a clear change in both retail strategy and consumer behaviour. Leading retailers are managing private labels as full brands, supported by data-led assortment planning, emotional brand positioning and consistent visibility across physical and digital channels.
Inverto identifies procurement and supply chain excellence as critical success factors. Retailers using AI-driven demand forecasting report planning accuracy improvements of 10–20%, supporting availability, reducing markdown risk and reinforcing the long-term profitability of non-food private labels.