The Eurofication of Private Label?February 03, 2014 - by Kory Grushka
Works Design published the cover story for the February 2014 issue of Brand Packaging Magazine, entitled “The Eurofication of Private Label?” The article looks at some of the current trends affecting U.S. and European private label brands, and contemplates the future of the U.S. private label market. Below is an excerpt…
The U.S. private label market has grown significantly in recent years and will likely see continued (albeit measured) growth. The recession has created seemingly permanent changes in consumer perceptions and spending habits with respect to private label brands. While the growth rates may not be astronomical in the near term, the private label industry is growing and building a very formidable base thanks to changed consumer preferences, retailer focus on brand building, and the emergence of deep discounters, among other factors. Smaller retailers should start to follow the large players’ lead with tiered structures for their private label portfolios and highly differentiated brands in niche categories. They should (and will) forget the copycat era and think in terms of building brand equity with engaging packaging, product innovation and promotional activities around their private label products. Bottom line is that the retail environment will not mirror Europe in the foreseeable future, but private label is building a foundation that will continue the transformation of the industry for years to come.
Click here for the full article.