{"id":27071,"date":"2009-07-30T23:58:49","date_gmt":"2009-07-30T22:58:49","guid":{"rendered":"http:\/\/www.corporate-eye.com\/blog\/?p=27071"},"modified":"2009-07-31T01:01:59","modified_gmt":"2009-07-31T00:01:59","slug":"private-label-brands-show-impressive-growth","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/private-label-brands-show-impressive-growth\/","title":{"rendered":"Private Label Brands Show Impressive Growth"},"content":{"rendered":"

\"equate\"According to a U.S. study by Mintel<\/a>, private label food product introductions in 2009 made up 25% of all food product launches.\u00a0 In 2005, they only comprised 13% of all food product introductions on retail shelves.<\/p>\n

In 2008, private label food sales grew by 9.3% versus 4.5% for branded <\/em>food product sales.\u00a0 Mintel reports that private label food sales are expected to grow another 8.1% in 2009.\u00a0 Should branded food products be worried?\u00a0 Is this a trend that could (or already is) spilling over into other categories?<\/p>\n

Certainly, the recession drove some of the shift from branded to private label food products among U.S. consumers.\u00a0 The question is whether or not consumers will be satisfied enough with private label brands to stay loyal to them when the economy recovers.<\/p>\n

The other factor to consider is the amount of information consumers have access to in the 21st century.\u00a0 There is less risk associated with purchasing a private label brand for the first time because consumers have learned that often the difference between private label and branded products is negligible or doesn’t exist at all.\u00a0 For branded products that are competing directly with private label for the same consumer dollars and retail shelf space, this is a problem area.\u00a0 Suddenly, branded products must find ways to differentiate themselves as truly better than private label products or as offering a distinctly superior value than similar private label products.\u00a0 It’s a competitive factor that most branded product managers could ignore ten years ago.\u00a0 Branded products still held a perception of superiority in quality a decade ago.\u00a0 That perception has all but disappeared in 2009.<\/p>\n

A third factor to consider is the variety of private label products that are available in the 21st century.\u00a0 As CSNews.com<\/a> explains, private label products are being introduced as more than just copycats of existing branded products.\u00a0 Today, consumers can find a wide variety of private label products to choose from that often meet perceived needs that branded products don’t cater to.<\/p>\n

Finally, private label products today are not quite as “private” as they once were.\u00a0 Brands like Sam’s Club and Equate are accepted as viable competitors to consumer brands that have been around for generations.\u00a0 A private label brand that has a direct association with a well-known brand (e.g., Walmart or Target) can offer the same sense of trust and security to consumers making purchase decisions without the advertising dollars backing them.\u00a0 It’s an interesting challenge for branded products, and it’s one they’ve never really faced before.<\/p>\n

When the recession fades, will consumers remain loyal to private label products?\u00a0 My guess is yes.\u00a0 What’s your prediction?<\/p>\n

Image: Flickr<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

According to a U.S. study by Mintel, private label food product introductions in 2009 made up 25% of all food product launches.\u00a0 In 2005, they only comprised 13% of all food product introductions on retail shelves. In 2008, private label food sales grew by 9.3% versus 4.5% for branded food product sales.\u00a0 Mintel reports that […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[9],"tags":[5451,5471,5431,711,5421,5441,5461],"class_list":{"0":"post-27071","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-best-practices","7":"tag-consumer-product-brands","8":"tag-food-brands","9":"tag-generic-brands","10":"tag-mintel","11":"tag-private-label","12":"tag-private-label-brands","13":"tag-retail-brands","14":"entry"},"yoast_head":"\nPrivate Label Brands Show Impressive Growth<\/title>\n<meta name=\"description\" content=\"Twice the growth for private label food brands in 2009 than 2005. 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