In the last few years, private labels have steadily eroded the market share traditionally held by national brands. In fact, in 2008, private labels had taken over 25% and 50% in most European markets and 20% in the US. Private labels are defined as consumer products produced by or on behalf of, distributors and sold under the distributor’s own name or trademark through the distributors own outlets.
[This research paper has been reproduced with permission of the authors, professors of IE Business School, Spain http://www.ie.edu/]
The power of Private Label is so strong that it will soon shift to less developed countries in the world. Private Label is already well established in US and Europe but will start to grow now in China, Japan, South America and India. 60% of Private Label in combination with 40% branded goods will be the perfect efficient working combi. Maurice van Vliet Privatelabeltrader.com
on Feb 7, 2010