Also called oem products, they can add margin to stores as well as provide more credibility to shoppers. That story can resonate with consumers in a way that private label cannot. While private label still commands only 17% of the global marketplace, in some markets it is far higher. While the former harbors a productive market, the trend relating to private labels is just picking up in the us. Swiss consumers purchasing more private label products, study finds. Pdf national brands are wellknown and popular brands of. Plenty of privatelabel opportunities cstore decisions. National manufacturers have the ability to build a story around their brands that private label lacks. The largest markets for private label products are found primarily in the more mature european retail markets.
Comparatively, private label still has much room for growth, especially in north america, where penetration is still relatively low. He revealed that private labels were growing way ahead of the market, but added that there was still a place for premium products, which. Aug 29, 2017 when it comes to private label food and beverages, the stories dont match in europe and the us. While private labels dollar share of the us cpg market has hovered stubbornly around 18% in recent years, things started to change in 2017, according to new data from nielsen, which says store. As stated in the nielsen report of 2014, private brands are m. Mar 31, 2020 the nilson report newsletter is the most trusted source of global news and statistics about the payment industry.
It is a unique research publication which could not be accomplished without the assistance and cooperation of the nielsen company. The latest research from global measurement and data analytics expert nielsen reveals that sales of private label products in south africa now equate to r49. While the former harbors a productive market, the trend relating to private. The power of private label 2005 fuqua school of business. Private label trends 2017, private label food and beverages. It details the changes occurring in the private label sector. Aug 14, 2019 available to download in png, pdf, xls format. Private labels market share reaches alltime highs in 9. Amazing selling machine is a unique course and live training combined with software tools and live event with the aim to help people sell their own products. Sep 17, 2015 retailers love private labels because they. Private label liquor growth slowed in 2016, with variable performance across categories and segments. Private label spend growing at almost five times the rate of brand spend in uk.
The survey remains one of the largest and most comprehensive private label sourcing studies to date. Retail consolidation and the expansion of the discount format are key drivers for private label growth in developed markets. Swiss consumers purchasing more privatelabel products, study finds. When it comes to private label food and beverages, the stories dont match in europe and the us. Private labels and product categories revista espacios. Nielsen offers national brands private label protection. Private label brands of sales increased in a few countries in year 2009 compared to year 2008, but it still remains less than 5%, except of hong kong a. Nielsen recently released an article called the rise of premium private label and its impact on discount retailers. There is some truth to this, but increasing evidence suggests american consumers addiction to established brands is waning. Optional modules support creditdebit cards, private label prepaid cards, loyalty points, and coupons. In the us, the notsogreat recession turned into a windfall for private label, stimulating consumer interest in and directing retailer focus on store brands. Private label continues to grow, says acnielsen 181005. While private label products had solid momentum in the early 2000s, growth has become fairly stagnant over the past several years. Pdf consumers intention to buy private label brands revisited.
May 18, 2010 the growth in private label, or storebrand, grocery items will continue across most categories even as the u. The share of private label in this region is currently at 16%. Consumers intention to buy private label brands revisited. Economic situation malaysians attitudes towards private. The report suggested that retailers worldwide could continue the expansion of private label. I buy private label options only from certain stores i trust. No, the much more sophisticated private label has become the goto terminology. In two separate reports, nielsen looks at the impact the economy has had on consumers and private label growth in the u. The early 2000s were marked by solid private label momentum.
Private label sector continues to grow, says nielsen. Nielsen information across more than 60 countries shows that private label products continue to gain share across all major geographies. Home grocery nielsen reports that private brand gains share. Seven out of 10 millennials prefer stores that have a wide selection of private label products. Nielsen reports that private brand gains share nielsen has released its latest sales and market share statistics and it shows that private brands are gaining market share against the national brands in americas fastest growing retail channels. Private labels are manufactured by one company under another companys brand or private label. Consumerfactors moderating private label brand success. Amazon has plans to dominate the private label market, aggressively moving into gardenoutdoor, grocery, healthhousehold and homekitchen, as well as crosscategory everyday commodity essentials. The most recent total consumer report from nielsen stated that after trading negatively in the last quarter of 2016, store brands were posting dollar growth of more than three times the rate of branded products by the last quarter of 2017.
The power of private label starts to answer these questions by looking at the. According to nielsen s global private label report, among a sample of 27,000 consumers. Pdf in many countries retailers use private label brands i. The rise of the valueconscious shopper a nielsen global private label report march.
Nielsen reports that private brand gains share my private brand. It is an essential tool for anyone looking to understand the many aspects of the credit, debit and prepaid card business. Private label consumer packaged goods have seen sales rise by 3. Exhibit 2 after several stagnant years, private label share is beginning show signs of declining. Brand only manufacturer the brand only manufacturers focusing on own brands exclusively and do not enter private label production, and therefore they can assure the.
According to a gfk survey the number of private label items outside the lower price segment in germany increased by 60% for the period private label retailers competitive strategy. Private label items enjoyed dollar growth at over thrice the rate of branded products during the final quarter of 2017, according to nielsen data. The latest nielsen sales data shows that the popularity of private label keeps growing across europe. Although starting from a smaller base, private label in the emerging markets saw the fastest growth over the last year, up 11%. As private label brands enjoy growing popularity and are increasing in both their quantity and quality, they continue to. Private labels, brands and competition policy report on the eleventh annual symposium on competition amongst retailers and suppliers held on friday 22nd may 2015 at mary sunley building, st catherines college oxford sponsored by. Iri market advantage 52 weeks ended 9112016 and same period prior years. The results confirmed that private label products of various categories are perceived differently by consumers, and showed that, except for certain goods, in general consumers still prefer. Private label growth typically comes at the expense of small and midsized brands, while category leaders remain relatively safe.
Private label today is anything but generic nielsen. Visa and mastercard credit card issuers top issuers. The reemergence of private label 2 the quality gap between national brands and private label products has been reduced or eliminated. As we look back on our industry over the years, center store has been hit hard by the loss of selling space and ongoing expansion.
Target views private brand development as a significant opportunity to drive differentiation, deliver unique. The two largest private label otc healthcare segments declined. Privatelabel spend growing at almost five times the rate of brand spend in uk. Aug 20, 2019 private label consumer packaged goods have seen sales rise by 3.
Branded private label private label rebounds, branded under performs source. Plmas international private label yearbook 2019 plma. Store brand quality now ranks as good as 65 percent of consumers agree or some higher quality 38 percent agree. Top private label categories paper products oilghee detergent milk powder sugar ksa 40% meat refrigerated eggs oil vegetables fixed weight rice uae 29% nielsen rms data 2018 gcc top 5 private label categories top pl categories top 5 private label categories are doing 40% of the private label business in ksa.
Nielsen report 2014, the state of private label around the worldwhere its growing. Consumers dont just like private label, they prefer it. With a premium facelift on many private label products, weve seen an interesting impact on discount grocery stores. As food prices continue to fall, national brand manufacturers have been lowering their prices. It serves as a benchmark for your companys private label strategy.
Led by packaged grocery, private label accounts for 18. The data compiled for plmas 2016 international private label yearbook shows that the market share for retailer brands increased in of the 20 countries tracked by nielsen. The nielsen company, global online survey, q3 2010. The latest nielsen data shows that market share for retailer brands has climbed to alltime highs in 9 european countries and for the first time stands at 30% or above in 15 of the 20 countries. In many countries retailers use private label brands i. Whether your responsibility is your own product category or a retailers entire private label offering, plmas 2019 roundtable will help you evaluate your marketing strategy and determine what new steps your company can take now. The majority of consumers purchased more private label.
The strategic importance of private label continues to grow, driven by significant trends affecting the retail industry. Nielsen 2010, the private label brands are still not famous in all asian markets, but only hong kong having a share above 5%. Private label dollar share in the united states in 2016 and 2019, by price tier. Rising commodity prices and consumer desire to get the best pricevalue products are driving private label s growth, according to a new study released by the nielsen co. Private label s market share reaches alltime highs in 9 european countries amsterdamthe popularity of private label keeps growing across europe. Sales of private label products are still growing, having significantly increased over the past year, according to new research from the nielsen company. While private label s dollar share of the us cpg market has hovered stubbornly around 18% in recent years, things started to change in 2017, according to new data from nielsen, which says store. Nov 14, 2019 after years of stagnant growth and lack of innovation in center store, its time to reinvent and prioritize your largest business for the future by leveraging three key focus areas for success in 2020 and beyond. And it turns out, consumers want the products to be more sophisticated now, too. Private store brands, retailer brands, own brands labels were. Findings indicate that the influence of private label image and perceived quality on purchase intention are partially mediated by loyalty and moderated by manufacturer identification. Were talking about the development of private label products and the new challenges that this will present for brands and manufacturers across the globe, as retailers develop and market their own products rather multinational name brands to meet changing consumer needs. Why target is making its biggest privatelabel bet on grocery.
The relentless store expansion by retailers over the past decade has given shoppers more access to private label and to brands. Global nielsen news and insights delivered directly to your inbox. Private label continues to give national brands a run for their money with over half of consumers saying they shop a store specifically for its private brand, according to a report by daymon, a. The more effective the story, the more effective the brand communication. The private label market in latin america is also small in terms of value share. View notes nielsen global privatelabel reportmarch2011 from business m 232 at riverside city college. Private label is the new brand of choice emerging, disruptive brands have strong foundations onlineand some are either nonexistent in brickandmortar or have a very small physical presence. The international private label yearbook can be accessed by plma members. Much of this growth was coming from premium private label products, the report added. The rise and evolution of private label in australia 1 pont of private label appeal is driven by a clear price advantage, and a cautiously evaluative australian shopper. Pdf consumerfactors moderating private label brand. Private label is a store or retailer brand, which is exclusively owned, sold and distributed by the retailer making it possible to differentiate from other stores and gain store loyal customers. Consequently, this has led to consumers often viewing private label products as a competitive brands option. The journey to growth along roads less traveled 44 times and trends source.
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