Nielsen: Private Label Has Global Staying Power

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

August 31, 2010

Despite the forecasted improvement in the economy in the long term and consumers’ anticipated spending increases to come, private label is expected to remain steady and perhaps even grow globally, according to The Nielsen Co.

A 2010 global online survey conducted by Nielsen revealed that 60 percent of consumers across 55 countries from Asia Pacific, Europe, North America, Latin America and Middle East/Africa (consisting of countries from Saudi Arabia, Pakistan, United Arab Emirates, Egypt and South Africa), said they are stocking cupboards with more store brands as a result of the economic downturn.

Across the regions, Latin America led the way at 66 percent and the Middle East/Africa/Pakistan area trailed at 51 percent.

Consumers in Colombia, Spain, Portugal and Greece reported the highest levels of private-label purchase intent during the economic downturn, at 80 percent, 79 percent, 74 percent and 70 percent respectively, according to Nielsen. The lowest reported drift toward private label came from consumers in Sweden (70 percent), Thailand (62 percent), Hong Kong (60 percent) and Denmark (59 percent) who indicated they did not purchase more store brands during the recession.

Economic pressures, however, are not the only things driving value-seeking consumers to buy private label, according to Nielsen, which noted that retailer quality and selection improvements are contributing factors.

Staying Power
Fully 88 percent of shoppers globally said they intend to keep buying private label even after the economy improves, suggesting that store brand quality has reached parity with national brands and delivers on consumer expectations, according to Nielsen. While Latin American and Middle East/Africa levels were slightly less than the global average at 83 percent and 79 percent respectively, the overwhelming majority of consumers still intended to pursue a value strategy.

Countries with the most value-conscious consumers when it comes to private label include Austria, Germany and Sweden, all registering a better than 95 percent intent to continue purchasing private label, while more than one-quarter of shoppers in the Ukraine (31 percent), Pakistan (28 percent), the United Arab Emirates (27 percent) and Venezuela (27 percent) had no intention to buy private label in the future.

Read These Related Articles:

• August Private Label Dollar Sales Up, CPG Down (Correction)
• Store Brands' Dollar Sales Rise, Unit Volume Declines
• Store Brands Tally Historic Market Share Gains
• PLMA Live: Nielsen V.P. Says Store Brands Will Remain Strong After the Recession
• Nielsen: Look to Europe for the Future of U.S. Store Brands

Most Read

Guest Columns

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

Linking Your Empowered Customer into Your Store Brand Management Process

The formula for success is for retailers to take a holistic store brands management approach by collaborating with customers to maximize store brands potential.

Source: Austin Clark Group

See All Guest Columns »

Press Releases