• Discount Retail Consulting GmbH

Global: Private Label brands continue to advance

Updated: Aug 17

Discount Retail Chains and supermarkets globally have been among the few businesses retaining intimate contact with consumers during the coronavirus lockdowns. They have done a great job as an essential service to the community, helping to ensure safety and boost trust.


In the short term, supply chain constraints led to increased purchase opportunities for Private Label Brands, as consumers have not been able to find certain manufacturer brands. In the medium term, economic constraints may drive a new wave of Private Label adoption for value seeking #consumers.


However, retailer #PrivateLabel isn’t just about price. #Retailers go to market with a wide range of Private Label #strategies, depending on their specific customer bases. They increasingly understand the need to treat their Private Label Brands like true brands, to ensure their propositions are appropriate for their specific customer bases. For example, some retailers have created wellness and sustainability-focused Private Label strategies, including ingredients reduction and calling out provenance.


In almost all European countries the Discount Retail and supermarket chains' own private label brands again increased their market share last year. Switzerland, Spain and the UK remain at the forefront.


In six countries, Private Labels represent more than 40% of the volume, but in terms of turnover, market share is significantly lower: private labels generally offer a cheaper alternative to branded products.

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