Private labels are still growing fast and nonetheless have a great growth potential, after all these years. And private labels will be using the leverage to get there. Why not? Only upsides.
PL success is obviously scattered both by geography and by category. In Europe the UK and Switzerland are often mentioned as the mature PL markets averaging around 50% in a supermarket. This can be compared to shares below 20% in markets like Italy and the US.
Private label products are said to be available in 9 out of 10 FMCG categories and average on a price point 30% below national brands. This is a serious challenge for any brand owner. The recent economic downturn has also further driven the demand for PL and retailers are building strong brands that are changing the balance in the eco system.
Brand owners are meeting the threat with all they have got. But my view is that few are to the full using the most powerful weapon available at POS – the primary packaging.
Use the packaging as the superb marketing tool it is. Invest in strategic packaging design, think through what you want to communicate. Put in a budget for developing increased packaging functionality. Add value to the product with a pack that is easier to open, re-close, pour from, store, dispose of, etc.
Make it easier for the consumer to determine the difference between products, use the packaging! It works.