The two branches of Aldi, Nord and Süd, are going to unify their private labels. By 2020, customers of both chains will only be able to buy the same brands, spelling the end of brands like Topstar and Milsani.
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Large mainstream retailers can’t find an adequate answer to the power of hard discounters, multinationals see the value of their brands decrease: private label is causing a true revolution, says expert Koen de Jong of IPLC.
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German fashion web shop Zalando will be integrating its private labels into the rest of the platform. The idea is for these labels to compete less with external brands. For that reason, the separate private label division will be terminated, which may result in jobs being cut.
Amazon has made a strategic U-turn away from manufacturing its own exclusive products and having them made by third parties instead. The e-commerce giant has already closed over 220 exclusive deals.
Amazon's neverending good news show is over: during the holidays the company expects its lowest turnover growth in years. On top of that, its home fashion brands are quite the disappointment. On the other hand, the retailer seems to be evolving to slower but more profitable growth.
French chain Carrefour has removed almost all A-brands products from the shelves in four stores, in order to test the consumers’ willingness to buy only private labels.
European food retailers are refining their product range of private labels and are fully focused on added value. The goal is to improve their margins, to differentiate from the competition and to increase customer loyalty.
After it introduced Amazon Prime to an increased number of European markets, Amazon is now bringing in its own FMCG private labels. Over the past few weeks, the online department store launched several private label products in Europe and it has plans for even more.
Carrefour Market is going to display customer ratings for some two hundred items in its physical stores, featuring a short text from the customer and a star-based rating. The chain will implement this feature in its home territory, France, first.
Discount formulas’ emancipation, started by Lidl, helped evolve private labels, from their position as price breakers to their distinguishing position in formulas built on their private labels or fancy brands.
Private label manufacturers encounter plenty of cost-increasing obstacles when they collaborate with retailers, but their partnerships with hard discounters are much more efficient. What can we learn from that?
Budget private labels are not the right strategy to fight off hard discounters, according to the International Private Label Consult (IPLC). Their inferior quality damages a supermarket's brand image and its margins are dwindling.