Food
Supermarket chains are reducing the price gap with hard discounters by lowering prices and adjusting their private label strategy. This increases the gap between private label and A-brands.
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In most European countries, food retailer brands maintained their volume share during the pandemic. "A sign of confidence," according to private label manufacturers. However, selling prices were under pressure.
The buying alliance between Carrefour and Tesco is subject to strict conditions by the French competition authority: fruit and vegetables are excluded from the cooperation, as are products of which Carrefour has more than 15% market share.
At the end-of-year fair Carrefour Belgium showed the renewed look of its own brand. New packaging and sub-brands should make the products easier to find and more recognisable on the shelf.
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.
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.
Looking at the sheer amount of companies exhibiting at the 2017 PLMA Trade Show in Amsterdam, private label must be thriving in Europe. Most notably, private label has shed its price image (partly) and more sophisticated concepts have been launched.
Amazon emphasized its major food ambitions with a new range of private label products: Wickedly Prime particularly targets 'foodies'.
Retail report
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.
m-Tail
Without anyone knowing, online retailer Amazon launched several of its private fahion labels. The company has been trying to build a team that should handle its own fashion labels, but it now seems several of those have already been found online.
