To meet the demands of value-seeking consumers, retailers are increasingly creating their own brands to compete against the brands that sell in brick-and-mortar stores as well as online.
According to a Nielsen article, shoppers are willing to be disloyal, and private label has earned their share of wallet.
The article stated:
- Store brands account for 17% of consumer packaged goods (CPG) dollar sales in physical retail stores.
- Private-label sales have also increased by $7.9 billion across brick-and-mortar stores in the past three years.
- CPG private label accounts for 3% of online dollar sales, up from 1.3% two years ago.
- Private label health and beauty products together do not even register a percentage point of online dollar share, yet they have 17.9% of in-store dollar share.
Consumers have proven to brands and retailers that they care less about brands names and more about product value. According to Nielsen, "brands find themselves in a tight spot between niche disruptors and private label, and only the most innovative will win the omnichannel battles ahead."
For the full article, please visit www.nielsen.com.