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Exclusive: The Rise and Rise of Brand X—Why Consumers are Seeking Out Private Label

By: Euromonitor International
Posted: November 24, 2008
Euromonitor International's new “Private Label: Potential in a Weakening Economy” report explores why increasing numbers of consumers worldwide are actively seeking out less expensive goods across sales channels. According to the report, private label—a category of increasingly creative, quality labels in its own right—is gaining a broader consumer following, boosted by the current economic downturn and growing consumer demands for one-stop and convenience shopping. However, there are significant national and regional differences.

Sector trends:

  • While increasingly sophisticated in recent years, private label still enjoys a greater share in highly commodified sectors such as disposable paper products and particular categories within packaged food and pet food.
  • The hardest subsectors for retailers to enter are those dominated by iconic brands with strong market support such as carbonated drinks, alcoholic drinks and confectionery, and in baby food or OTC products, where a high level of trust is required of a brand.
  • The trend toward so-called “masstige” products in the cosmetics and toiletries market is creating an opening for lower priced products, which private label brands are able to fill.
  • Within household care products, several retailers have launched high profile “green” lines and are gaining share over industry giants, due to their high share of innovation and low prices.

For additional information or to purchase the full private label report or other cosmetic and toiletries reports, visit Euromonitor International’s site.