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 Article Details
09/12/2011

Retailers own label brands prosper as shoppers across Europe demand

IRI Group has launched a special report into the balance of power between retailer’s own label brands and national brands across Europe

 


 

Retailers Own Label Brands Prosper as Shoppers acrross Europe Demand Value for Money

 

Bracknell, U.K, 8 December 2011 - IRI, the leading consumer goods and retail market measurement and insight consultancy, has launched a special report into the balance of power between retailer’s own label brands and national brands across Europe. The report shows that the continued economic uncertainty is making shoppers more prudent all across Europe and they are demanding greater value for money, as they turn to private label products as opposed to national brands.

According to the latest report ‘Retail Private Label Brands in Europe’, shoppers now consider many private label products to be as good as national brands, and in some countries, better. In fact, the value share of private label goods has increased in every country, except in the United Kingdom, and is now an average of 30% across the region. For consumers, a typical European private label shopping basket costs on average 30% cheaper than one filled with national brands

The position varies from country to country. In the United Kingdom, the value share is 49.2% of all FMCG products sold, compared to 16.1% in Italy. And, in USA, this figure is just 18.5%.The greatest increase in private label was in Spain, where the leading retailers have continued to invest in developing multi-tier ranges, recognising that shoppers are turning ‘back to basics’ to save money. The United Kingdom is the only country with a decrease in market share reflecting the high level promotion activity on national brands. France sees its value share remain flat at 31.0%, a result of national brand manufacturers stepping up their marketing activities while private label promotional activities decreased. In Germany, the unit/volume share has dropped 0.7% but is still high at 49.6%. This drop was in alignment with the general trend in Germany – a decrease of the food unit sales since the beginning of 2011, where shoppers are more cautious.

“European shoppers are becoming much more inclined to assess the quality and value of the products that they buy. With rising unemployment and a major economic crisis in Europe, it’s understandable that the consumer will want to budget for the overall price of their weekly shop and secure maximum value for money,” explains Rod Street, Vice President of International Consulting at IRI.

“European shoppers are becoming much more inclined to assess the quality and value of the products that they buy. With rising unemployment and a major economic crisis in Europe, it’s understandable that the consumer will want to budget for the overall price of their weekly shop and secure maximum value for money,” explains Rod Street, Vice President of International Consulting at IRI.

The report explores current and emerging private label trends across Europe, looking at key indicators such as the value and volume share of private label as well as the price and promotions pressure for FMCG products across seven European countries.

Key highlights from the report include:

  • The market share of private has increased across Europe. Value varies from as much as 49.2% of all FMCG products sold in the United Kingdom to 16.1% in Italy. This compares to around 18.5% in USA.
  • Retailers command on average a 30% prive advantage over national brands that provides real value to cost-conscious shoppers in the current economic environment.
  • Although private label promises good value, consumers still prefer to buy national brands if they can do so at the same price.
  • Private label products are how available in 9 out of every 10 categories giving consumers more options on brand choice.
  • Private label brands benefit from a well developed merchandising strategy and still command the biggest share of mani FMCG categories. It remains a growth opportunity for many retailers and is of great importance to further developing loyalty and increasing margins.

 

The report can be downloaded from www.IRI.eu

 

ENDS

Notes to editors

About IRI
IRI, formely named Information Resources, Inc("IRI") is the global leader in innovative solutions and services for driving revenue and profit growth in CPG, retail and healthcare companies. IRI offers two families of solutions: core solutions for market measurement and Symphony Advantage solutions for enabling new growth opportunities in marketing, sales, shopper marketing and category management. IRI solutions uniquely combine content, analytics and technology to deliver maximum impact. IRI helps companies create, plan and execute forward-looking, shopper-centric strategies across every level of the organisation.
Form more information, visit:www.IRI.co.uk

For further information or a copy of the report please contact:
Teresa Horscroft
Eureka Communications
Tel_ +44 1420 564346
Mobile: +44 7990 520390
Email: teresa@eurekacomms.co.uk

Or

Anne Lefranc
Marketing Director at IRI
Email: anne.lefranc@IRI.com
Tel: +33 1 30 06 23 62