Just a few words about Private Labels
Private labels are not a novelty. The food scene has known them for several decades now. But something has changed. Many aspects of the ‘private labels’ trend are totally new. The geographical areas where private labels are at stake are more and more numerous. The nature as well as the quality of products have dramatically changed. New private labels have emerged. Everywhere around the world, retailers are totally rethinking their approach towards private labels, as consumers do. New products, new expectations… private labels might be a segment full of opportunities. Our experts help you determine the best path.
New strategies to develop private labels in France
The private label market in Italy, Spain and Germany is growing, but not in France. The picture is even worse. Private labels suffer from decrease in sales share for the 5th consecutive year (26.9% of market share in 2016). How come? In France, private labels are confronted with a price war with A-brands (33.5% of market share in 2016). Experts point out several explanations, the major of which is that retailers grant less promotions on private labels than on national brands.
Another one is the structural gap reduction between the national brands and the private label prices. Last but not least, there’s less innovation on private labels than on national brands. This is why some retailers have developed, some retailers have developed new strategies, creating premium labels (promoted and sponsored by famous chefs) as well as organic labels. A true success story!
While standard private labels are losing ground, premium and organic private labels are still in growth (+10% in 2017). In France, the improvement of quality and innovation might be the key for future successes.