Private label sales have increased significantly in recent years due to widening price gaps between private label and national brands. Categories where private label saw strong growth were those where the price gap between private label and national brands increased the most. Private label growth has been strong in center-store categories where prices are more important to shoppers. Retailers expanding their tiered private label offerings, including extreme-value and premium options, has further fueled private label growth, especially during the economic downturn.
The evolution of value and values for private label brands
For more white papers and webinars, go to http://www.sldesignlounge.com
Or visit us at http://www.sld.com
The evolution of value and values for private label brands
For more white papers and webinars, go to http://www.sldesignlounge.com
Or visit us at http://www.sld.com
Looking for help with Facebook? Our slides include tips on creating compelling content, using the new changes such as offers and promotions, engaging more people and improving the ratio of people 'talking about ' your page.
How to use facebook for your business, learn what is important in your facebook marketing, the importance of creating compelling content and how to do it, along with many more tips for facebook management.
Are you wondering how you can achieve 100% completeness on your Linked In profile? Wondering how to improve your Linked In profile. These slides take you through some tips on how to use Linked In effectively and how to update your profile so it is engaging and impressive.
In this Session:
Using social media effectively
OEA’S goals for social media
Which channels OEA uses
How to measure your success on Facebook
Tips for using Facebook and Twitter for your members
By Professor Byron Sharp, Professor Magda Nenycz-Thiel, James Martin, Zac Anesbury & Professor Bruce
McColl.
Ehrenberg-Bass Institute releases its latest report; study claims big brands are not dying.
Winning Shelf Space: Private Labels or FMCG Brands?Aranca
Higher margins provided by the Private Labels in comparison to established FMCG brands have augured well for the growth of Private Labels. This Aranca whitepaper is an effort to delineate the emergence of Private Labels and its impact on branded products in the FMCG sector.
Winning shelf space private labels or fmcg brandsAranca
Consumer preference for Fast Moving Consumer Goods based on quality and affordability, in the high inflationary markets led to the emergence of private labels across geographies such as Europe, China, India, and the Americas.
[Project] Retail Management Report Brands Versus Private Labels- Fighting to WinBiswadeep Ghosh Hazra
INTRODUCTION-
Private label brands are on the rise right now everywhere in the world and command a higher unit share than the strongest of national brands in 77 out of 250 product supermarket categories which is an astonishing 31% and even in 100 of those categories, Private Label comes a close second or third position. However, manufacturers do not realize that sales of private labels sales vary with the economic conditions of the country they are operating in. Their share goes up when the economy is suffering and tanks in stronger growth periods.
The proof of this claim is evident from the following fact- During the last 20 years, Private Label share of markets has averaged out at a decent 14% of the U.S dollar supermarket sales. This share was 17% during 1981-82 at the peak of the recession and in the year 1994, this share dropped to 14.8% despite receiving media adulation. Private labels have managed to pressurize strong national and international brands but brands must also assess the threats that are possible from private labels and whether they will decline or mature in the future.
European Markets have seen quite success with Private Label Brands and compared to USA supermarkets which has only 15% of their sales come from Private Label Brands, European supermarkets has 54% of their sales from PLBs. This is because in Europe, the television markets are highly regulated and hence advertising is limited. Also, grocery chains dominate the entire European landscape and hence retailers hold more power in relation to manufacturers than in the United States of America.
Looking for help with Facebook? Our slides include tips on creating compelling content, using the new changes such as offers and promotions, engaging more people and improving the ratio of people 'talking about ' your page.
How to use facebook for your business, learn what is important in your facebook marketing, the importance of creating compelling content and how to do it, along with many more tips for facebook management.
Are you wondering how you can achieve 100% completeness on your Linked In profile? Wondering how to improve your Linked In profile. These slides take you through some tips on how to use Linked In effectively and how to update your profile so it is engaging and impressive.
In this Session:
Using social media effectively
OEA’S goals for social media
Which channels OEA uses
How to measure your success on Facebook
Tips for using Facebook and Twitter for your members
By Professor Byron Sharp, Professor Magda Nenycz-Thiel, James Martin, Zac Anesbury & Professor Bruce
McColl.
Ehrenberg-Bass Institute releases its latest report; study claims big brands are not dying.
Winning Shelf Space: Private Labels or FMCG Brands?Aranca
Higher margins provided by the Private Labels in comparison to established FMCG brands have augured well for the growth of Private Labels. This Aranca whitepaper is an effort to delineate the emergence of Private Labels and its impact on branded products in the FMCG sector.
Winning shelf space private labels or fmcg brandsAranca
Consumer preference for Fast Moving Consumer Goods based on quality and affordability, in the high inflationary markets led to the emergence of private labels across geographies such as Europe, China, India, and the Americas.
[Project] Retail Management Report Brands Versus Private Labels- Fighting to WinBiswadeep Ghosh Hazra
INTRODUCTION-
Private label brands are on the rise right now everywhere in the world and command a higher unit share than the strongest of national brands in 77 out of 250 product supermarket categories which is an astonishing 31% and even in 100 of those categories, Private Label comes a close second or third position. However, manufacturers do not realize that sales of private labels sales vary with the economic conditions of the country they are operating in. Their share goes up when the economy is suffering and tanks in stronger growth periods.
The proof of this claim is evident from the following fact- During the last 20 years, Private Label share of markets has averaged out at a decent 14% of the U.S dollar supermarket sales. This share was 17% during 1981-82 at the peak of the recession and in the year 1994, this share dropped to 14.8% despite receiving media adulation. Private labels have managed to pressurize strong national and international brands but brands must also assess the threats that are possible from private labels and whether they will decline or mature in the future.
European Markets have seen quite success with Private Label Brands and compared to USA supermarkets which has only 15% of their sales come from Private Label Brands, European supermarkets has 54% of their sales from PLBs. This is because in Europe, the television markets are highly regulated and hence advertising is limited. Also, grocery chains dominate the entire European landscape and hence retailers hold more power in relation to manufacturers than in the United States of America.
Case study - Transaction pricing in a recessionary economyDeepankar Boro
Our client is an FMCG major that sells its products across many large and small retailers. The client is facing pressure from one such large retailer to cut prices across brands and categories. The client is therefore losing money on several products. Our client would like to use analytics to bring in some science into the pricing decision. Our analysis should help the client decide what pricing strategies should be applied to each product.
How would you approach this analysis?
The data available is weekly price and volume data for all client brands at the retailer for a period of 2 years.
USA Multi Level marketing Industry Research 2018Niraj Singhvi
This report is prepared by Maple Growth Partners, an investment research and strategic advisory firm.
We recently evaluated the US multi level marketing industry for our client, a US-based private investment firm. In this report, we provided a typical performance cycle of an MLM company; identified suitable KPIs to analyze and compare competitor firms; and commented on general MLM market dynamics.
We identified that ‘pop and drop’ is the typical performance curve for a MLM firm. Pop and drop can be defined as a paradigm when sales massively increase in the initial years and then subsequently experience a sharp drop right after hitting the peak level. Typically, drop in sales of the existing markets are usually covered by the gains in sales of new markets. This is pretty much a non-ending cycle of entering and exiting new markets.
Increasing number of people joined MLM industry during and post 2008-09 recession with the hope of additional/secondary income but sales dropped as it was difficult to sell (already inflated) products.
- Direct selling retail sales per person was the lowest in 2009, peak of recession
- As the number of people involved in direct selling is increasing, direct sales per person has been on a declining trend
We also included top 55 companies in the US and compared them using a standard template by populating data fields such as key products/services, compensation structure, sales method, geographies, financials, member churn rate, business entry fee, % of sales commission, etc.
At the same time that brand marketers have been investing to make their retail relationships more strategic and collaborative, retailers have been investing in Private Brands which directly compete with national brands, and realizing tremendous success with them. This white paper explores the issues and opportunities associated with these complex relationships, and identifies ways to generate mutual gains
Check out this interesting white paper by Willard Bishop on how national brands and private label in non-competing categories can collaboratively cross-merchandise for a win-win situation.
1. Private Label …
Mind that Gap
The growth of Private Label has accelerated in recent years, fueled by the economic downturn that has shoppers looking
for more and more ways to save. Private Label sales increased significantly in 2008, and growth continues into 2009,
although it does show some signs of leveling off.
Where is this sales growth coming from? Not from more buyers. Virtually every household is buying some PL items,
with penetration already at 100% among a static sample of shoppers. The growth is driven by an increase in Private
Label spending per household, driven by consumers purchasing Private Label in more categories across the store than
ever before.
Private label growth in terms of both volume and share varies greatly across categories. However, there is a clear
correlation between price gap and Private Label share growth. Price gaps have widened in recent years as national brand
manufacturers have raised everyday prices, and retailers have increased promotion of Private Label, helping to fuel
growth of Private Label across many categories.
The chart below illustrates the price gap effect. Categories in which Private Label experienced moderate to strong share
gains were those in which price gaps widened, with Private Label selling at a greater discount (by two percentage points)
to national brands. Categories in which Private Label declined in share, on the other hand, were those in which price
gaps narrowed, with Private Label selling at a lesser discount to national brands.
Average Price Gap Point Change, Private Label vs. Branded
6%
Avg. across 4%
categories 2% 2%
within each
PL growth
segment
-1% -2%
Strong Decline Moderate Decline Small Decline Small Gain Moderate Gain Strong gain
PL Growth Segment
Source: Spire Loyalty Panel, 52 weeks ending June 2009 vs. YAG.
2. Spire also assessed which factors have contributed to Private Label’s growth, which has been strong in some categories
and lackluster in others. Private Label growth has been particularly strong in routine purchase, center-store categories, in
which price gaps have been particularly pressured, and Private Label promotion has accelerated. Private Label growth
has been significantly more restrained in impulse categories, perhaps because these categories tend to be more
prominently displayed than others. Consumers may also tend to be more price-sensitive on planned purchases than on
impulse purchases. Categories in which national brand products are differentiated on the basis of package innovations
also appear to be experiencing more moderate Private Label share growth, perhaps because these branded products offer
a tangible benefit that is apparent to consumers at the point of purchase, prior to consuming the product.
As retailers have continued to expand Private Label offerings across the store, an increasing number of retailers are
developing tiered programs, supplementing “mainstream” Private Label products with extreme-value offerings and
premium Private Label products. The presence of an even lower-priced value tier of Private Label products has further
fueled Private Label growth in certain categories, particularly in these challenging economic times.
Look for more “InSpirations” in the coming months on the subject of Private Label trends, and the many different ways
consumers may shop Private Label.
Spire, LLC is a consumer centric analytic services provider. Working with both CPG manufacturers and retailers, Spire leverages their proprietary Loyalty
Panel to provide insights on consumer trends, shopping behavior, new product performance, and the consumer impact of pricing and promotion.