Private Label Products: Competition or a New Opportunity

Branded products are facing increasing competition worldwide from private label goods from intermediaries. Thanks to an increase in price sensitivity and a decrease in brand loyalty as consumers look to save money, private label products are enjoying significant penetration in many regions. A study of seven countries by the Private Label Manufacturers Association revealed that private label market share has exceeded 40 percent in the United Kingdom, Germany, Belgium, and Switzerland. Market share for retailer brands is at an all-time high in France and Spain, where one of every three products sold carries a private label.

While private brand success is known to be strongly affected by economic conditions and the self-interest of retailers who want to improve their bottom lines, other factors contributing to the growth include improved quality and the development of segmented private brand products. Some private label brands even have a premium category now. Emboldened by the success of private label brands, manufacturers have expanded this “privatization” to new product categories, hoping to expand the success.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg. 187. 

6 thoughts on “Private Label Products: Competition or a New Opportunity

  1. Unquestionably imagine that which you stated. Your favorite justification appeared to be at the net the simplest thing to keep in mind of. I say to you, I certainly get irked whilst other folks consider concerns that they plainly do not know about. You managed to hit the nail upon the top as neatly as defined out the entire thing without having side effect , other folks could take a signal. Will probably be back to get more. Thanks

  2. Great beat ! I wish to apprentice while you amend your site, how could i subscribe for a
    weblog site? The account helped me a acceptable deal.
    I have been a little bit familiar of this your broadcast offered bright clear idea

  3. Hey there! I know this is kinda off topic nevertheless I’d figured I’d ask. Would you be interested in exchanging links or maybe guest writing a blog post or vice-versa? My site discusses a lot of the same subjects as yours and I think we could greatly benefit from each other. If you might be interested feel free to send me an email. I look forward to hearing from you! Excellent blog by the way!

  4. I would like to thnkx for the efforts you have put in writing this website. I’m hoping the same high-grade website post from you in the upcoming as well. Actually your creative writing abilities has inspired me to get my own web site now. Actually the blogging is spreading its wings fast. Your write up is a great example of it.

Leave a Reply