Eurominitor publishes report on future of private label
Euromonitor has released a report entitled “The New Face of Private Label: Global Market Trends to 2…Euromonitor has released a report entitled “The New Face of Private Label: Global Market Trends to 2018”. It concludes that:
•• The rather gloomy economic outlook is positive for private label as consumers are likely to remain in a frugal mindset for some time to come. Furthermore, private label has enormous long-term growth potential since sales are still equal to only 10% of all grocery value.
•• Retailers will continue to expand their private label ranges and hone their existing concepts as a way to maintain market share, raise profits and increase customer loyalty in an increasingly competitive environment.
•• At the same time, private labels will continue to meet fierce competition from national brands, which will use all kinds of promotional tactics to maintain their market shares while incomes remain depressed.
•• A key driver of private label FMCG growth will be the ongoing expansion and consolidation of modern grocery channels, as well as the move by big grocery retailers into the convenience channel. This will further widen the distribution base for private labels.
•• Retailers will increasingly take a brand-orientated approach to their private labels, investing in marketing and product innovation, segmenting ranges to appeal to different consumer groups and creating high quality venture brands, some with export potential.
•• The future will see a greater emphasis on private label advertising, while more sophisticated data mining and consumer profiling techniques will help with developing new products and targeting consumers more accurately.
•• Private label is expected to make only gradual inroads into the emerging markets of Asia Pacific, Latin America and Middle East and Africa over the forecast period, as retail channels consolidate and consumers become accustomed to the concept of store brands.