Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
RETAILING
Private Label
What are Private Labels?
• Private Labels are Retailers own, control, and exclusively
sell store brands
• Private Label ar...
Journey of Private Labels
• The origin of private label can be traced back to the ‘60s and
‘70s where the offering was che...
Who Makes Private Label Products?
• Private label products are made by several types of
manufacturers.
• Some large brand ...
National Brands vs. Private label
• Manufacturer (National) Brands
• Designed, produced, and
marketed by a vendor and sold...
Spectrum of
National vs. Private Label
The Gap
Limited
Marks &
Spencer
IKEA
Home Depot
% Store
Brands
National
Brands
Macy...
Relative Advantages of
National Brands versus Private Brands
Type of Vendor
Impact on Store National Private-Label
Brands ...
Private Labels
Advantages
• Unique merchandise not
available at competitive
outlets
• Difficult for customers to
compare p...
National Brands
Advantages
• More desired by customers
• Don’t need skills and people
to develop and promote
merchandise
D...
Most Recognized Apparel
and Accessory Private Label Brands
Examples of
Private-Label Brands
Examples of
Private-Label Brands
Private Label Options
• Bargain Branding
• no-frills product at a discount price.
• Copycat Branding
• imitates the manufa...
Consumers perception about Private
Labels
Price comparison of a National brand
and a Store brand in US
Some Categories More Suitable than
Others
• Categories preferred for Private Labels
• Dog food
• Kitchen towels
• Sugar
• ...
Preference of Private Labels
• Two thirds of global consumers consider supermarket
own, or ‘Private Label’, brands to be a...
Store brand market share in some other countries
41
29
24
22
20
12
0
5
10
15
20
25
30
35
40
45
Switzerland Canada Spain
St...
Private Labels in Hong Kong
Private label brands still have a long way to go in
Hong Kong
The 17% growth of private label ...
Benefit to Consumers
• Good Alternative to name brands
• Quality as good as name brands
• Good value for money
• Good for ...
Benefit to Retailers
• Significantly bigger margin on those sales.
• Significant source of additional profitability.
• Giv...
retailing-private label
Upcoming SlideShare
Loading in …5
×

retailing-private label

10,780 views

Published on

  • D0WNL0AD FULL ▶ ▶ ▶ ▶ http://1lite.top/AeMa5 ◀ ◀ ◀ ◀
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

retailing-private label

  1. 1. RETAILING Private Label
  2. 2. What are Private Labels? • Private Labels are Retailers own, control, and exclusively sell store brands • Private Label are a ‘Good Alternative’ to Other Brands, Offering the Same Quality & Value • Private labels are regarded as good Value for Money, and Quality on Par with the Big Brands.
  3. 3. Journey of Private Labels • The origin of private label can be traced back to the ‘60s and ‘70s where the offering was cheaper, generic products. • In 1970’s they were in the form of black and white labelled products. • The major improvement in packaging was the first step in the success of private label. • Traditionally, private label products have focused on the low- end price point. Now, some retailers will offer private label products across multiple price points including a premium line. • The popularity of private label is creating an additional challenge to name brand producers who need to recover expensive advertising and marketing costs.
  4. 4. Who Makes Private Label Products? • Private label products are made by several types of manufacturers. • Some large brand manufacturers use their excess capacity and expertise to produce private label products. • These products may be sold into food service venues or retail locations.
  5. 5. National Brands vs. Private label • Manufacturer (National) Brands • Designed, produced, and marketed by a vendor and sold by many retailers • Private-Label (Store) Brands • Developed by retailer and only sold in retailer’s outlets
  6. 6. Spectrum of National vs. Private Label The Gap Limited Marks & Spencer IKEA Home Depot % Store Brands National Brands Macy’s Target
  7. 7. Relative Advantages of National Brands versus Private Brands Type of Vendor Impact on Store National Private-Label Brands Brands Store loyalty ? + Store image + + Traffic flow + + Selling and promotional + - expenses Restrictions - + Differential advantages - +
  8. 8. Private Labels Advantages • Unique merchandise not available at competitive outlets • Difficult for customers to compare price with competitors • Higher margins Disadvantages • Need to develop expertise in developing and promoting brand • Typically less desirable for customers
  9. 9. National Brands Advantages • More desired by customers • Don’t need skills and people to develop and promote merchandise Disadvantages • Lower margins • Vulnerable to competitive pressures
  10. 10. Most Recognized Apparel and Accessory Private Label Brands
  11. 11. Examples of Private-Label Brands
  12. 12. Examples of Private-Label Brands
  13. 13. Private Label Options • Bargain Branding • no-frills product at a discount price. • Copycat Branding • imitates the manufacturer brand in appearance and trade dress • Premium Branding • private label at a comparable manufacturer-brand quality. • Parallel Branding • private labels that closely imitate the trade dress and product attributes of leading manufacturer brands.
  14. 14. Consumers perception about Private Labels
  15. 15. Price comparison of a National brand and a Store brand in US
  16. 16. Some Categories More Suitable than Others • Categories preferred for Private Labels • Dog food • Kitchen towels • Sugar • Flour • Paper products • Plastic wraps • Water • Rice and cooking products • Categories less preferred for Private Labels • Shampoo • Baby food • Pasta sauce
  17. 17. Preference of Private Labels • Two thirds of global consumers consider supermarket own, or ‘Private Label’, brands to be a good alternative to other brands • The market shares of store brands vary by product class and across countries • Global average who considers Supermarket Own Brands as a good alternative to other brands – 68% • Europe: 78% • the Pacific: 78% • North America: 77% • South Africa: 72% • Latin Americans: 64% • Asia: 51%
  18. 18. Store brand market share in some other countries 41 29 24 22 20 12 0 5 10 15 20 25 30 35 40 45 Switzerland Canada Spain Store Brand Market Share
  19. 19. Private Labels in Hong Kong Private label brands still have a long way to go in Hong Kong The 17% growth of private label brands in Hong Kong in 2011 is way below Asian peers.
  20. 20. Benefit to Consumers • Good Alternative to name brands • Quality as good as name brands • Good value for money • Good for people on tight budgets who can’t afford the best • The cost savings for the typical consumer is large
  21. 21. Benefit to Retailers • Significantly bigger margin on those sales. • Significant source of additional profitability. • Gives the retailer the flexibility to more easily align a specific customer need with a specific product. • The packaging and labels can be custom tailored to meet customer needs • Allows more control over pricing strategies. • Gives freedom for retailers to create their own marketing plans and to control their own inventory in stock. • Promote stronger customer loyalty toward retailer store.

×