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Private Label Brands. Private ... trend? Private Label brands - otherwise known
as Own Brands - have come a long way in the past few decades. ...
... They are often positioned as lower cost alternatives to regional, national or
international brands, although recently some private label brands have been ...
... Private label brands were traditionally defined as generic product offerings that
competed with their national brand counterparts by means of a price-value ...
... On average, private label margins are 6-10% higher than national brands. Another
benefit of private labels is one not offered by brand manufacturers. ...
... On average, private label margins are 6-10% higher than national brands. Another
benefit of private labels is one not offered by brand manufacturers. ...
Submitted by tanyalux on March 12, 2006
Category: Business
Words: 861 | Pages: 4
Views: 185
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Private Label Brands
Issued by: ACNielsen
Retailer Own Brands have established popular identities globally, but is South Africa in line with this trend?
Private Label brands - otherwise known as Own Brands - have come a long way in the past few decades. In the late 80's, the terms 'generic' and 'private label' were used to describe any product that was known to be cheaper and of lower quality than branded goods. Since then, Private Label brands have established their own identities, becoming popular consumer choices both globally and in South Africa.
ACNielsen conducted a local Private Label study incorporating 136 categories grouped into 10 product areas. Kerith Dix, Group Service Director of ACNielsen's Client Service Division, explains that 'products are deemed to be Own Brands where consumers can clearly identify them as belonging exclusively to a particular chain. This descriptor excludes other chain exclusive brands that cannot be easily identified as products of that chain.'
National results were analysed in comparison to worldwide trends, which indicate that over 68% of the world believe Private Label to be a good alternative to branded products. Global studies also point to the fact that certain regions have reached saturation state in their Private Label reach. 75% of categories worldwide include Private Label offerings, these products holding an average value share of 15%.
Growth of Private Label is much higher in emerging markets than it is in established ones, suggesting that South Africa could provide a platform for the expansion of such products. The percentage of categories including own Brands is in line with global trends. However, in 78% of these categories, Own Brands comprise less than 10% share. Exceptions to the South African rule are Canned Tuna and Scourers: Own Brands enjoy over 50% in both categories. Next most popular categories for Own Brands are tissue...
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