The time where private labels consisted only of low-priced, low-quality products is long gone. What private label has been before, copying the big brands or offering ‘me too’ at a lower price, has completely changed. Private label brands are now at the forefront of innovation, allowing retailers to explore interesting concepts and get them onto their shelves in a relatively short time frame.
Successful positioning of private labels
Notably, private label brands are becoming better positioned than A-brands to respond to consumer demands for natural and organic health and wellness, and convenience, leading to a proliferation of NPD.
Retailers are much more aware of local variations in demand and they are able to exploit this information to their advantage. They also go beyond classic private label strategies by partnering with local and regional brands allowing them to offer a unique assortment of products. This is in line with the consumers’ demand for diversity and more local products.
Top market categories as a percentage (%) of overall private label F&B launches (Global, 2019).