Most major CPG retailers in the U.S. and Europe view private label as a critical element of competitive differentiation strategies, yet private label development varies dramatically by country, market, retailer and category.
These differences can be partly explained by differing retail environments. Countries with a high retail concentration, for instance, tend to have high private label share. Dominant retailers have the brand equity and consumer loyalty to extend private label across categories, and the scale to gain required operational efficiencies.
Category dynamics also play a role. Categories with dominant brands and heavy brand investment in innovation, advertising and promotion typically have low private label share – illustrating brand manufacturers’ ability to impact private label opportunity.
This report explores private label trends across the U.S. and Europe and the key factors influencing private label development to lend insight into what both retailers and manufacturers can do to achieve their objectives with respect to private label while delivering against consumer needs.