How to Resist the Private Label Threat in 2006

• Quantitative data covering Private Label sales value between 2000 and 2005 with forecasts to 2010, broken down by country and category.
• Comprehensive analysis of private label goods' market share across all countries and categories between 2000 and 2010.
• Detailed insights based on consumer survey data showing how and why people are changing their shopping behavior.
• Action points offering practical strategies to counter the threat posed to branded CPG manufacturers by Private Label's growth.

• Obtain exclusive data concerning private label sales and share over time and by category across Europe and the US.
• Improve your marketing strategy by understanding how consumers make the choice between Private Label and Famous Brand purchases.
• View best practice examples of targeting and marketing both Private Label goods and Famous Brands that counter the retailers' threat.

CHAPTER 1 EXECUTIVE SUMMARY

Hot topic

The Future Decoded

Consumers are buying more Private Label goods

Consumers' relationship with brands is changing

Attitudes to Private Label consumption vary by age and gender

Private Label is becoming less of a discount purchase

Retailers have improved their consumer insight and consumer trust

Action points

CHAPTER 2 THE FUTURE DECODED

Introduction

Defining Private Label

TREND: Consumers are buying more Private Label goods

US consumers are spending more on Private Label food

Europe outstrips the US driven by a growing discount culture

The UK's uptake leads Europe, while mainland countries show similar penetration

TREND: Major retailers have a growing impact on society

Retailers have a huge impact on lifestyles and eating habits

Supermarkets are diversifying into new categories

Consumer groups and lawmakers are concerned by retailer power

TREND: Consumers' relationship with brands is changing

Premiumization is raising the bar across all markets

The focus is on quality, not conspicuous consumption

Mainstream brands risk being 'caught in the middle'

INSIGHT: Attitudes to Private Label consumption vary by age and gender

Young Adults and Early Midlifers are brand sensitive

Mature consumers use Private Label as a cheap option

Baby Boomers demand real value and will trade up for the sake of quality

Retirement wealth concerns will boost Private Label penetration

The gender gap affects Private Label more than the age gap

Men are more accepting of higher prices for Famous Brands

Female consumers show a greater preference for image

INSIGHT: Attitudes to Private Label vary by country

Premium stagnation in Europe favors Private Label growth

The UK has a strong tradition of Private Label

Continental Europe shows lower Private Label penetration

Low retailer concentration diminishes Private Label penetration

National character also plays a part

The presence of hard discounters boosts Private Label penetration

The US is a growth market for Private Label

Foreign chains in the US market stiffen competition

INSIGHT: Private Label is most successful in the food category

Food is the key battleground for Private Label

Famous Brands will remain strong in alcoholic drinks

Personal care is a brand-sensitive consumer market

INSIGHT: Private Label is becoming less of a discount purchase

Price remains an issue in Private Label

Sacrificial consumption habits complicate the issue

Private Label benefits from economies of scale in marketing

INSIGHT: Retailers understand their consumers better than Famous Brands

Technology has helped retailers understand their business

Reward cards primarily acquire consumer data, not consumer loyalty

Direct marketing is assuming greater saliency at the expense of mass media

INSIGHT: The trust gap between Private Label and Famous Brands is decreasing

Consumers look to retailers to play an active role in society

Retailers' extra activities help to build consumer trust

Growing online retail brings the supermarket to the home

Consumers trust large retailers to look after their money

Some Private Label brands are more trusted than others

INSIGHT: Private Label purchase depends on circumstances

Private Label purchasing behavior is somewhat flexible

Stock-outs shape purchase choice

Conclusions

CHAPTER 3 ACTION POINTS

Introduction

Improve knowledge of consumers to compete with retailers

Form joint ventures with reward card programs to leverage data

Use the online channel to improve knowledge of consumers

Enhance consumer trust by championing relevant causes

Ensure correct fit between consumer involvement and reward

Adopt a mutual approach to issues that affect the whole industry

Innovate to ward off the advance of Private Label

Mitigate against 'me-too' Private Label products

Elevate functionality and quality to reassure consumers

Create 'professional' quality female personal care products

Use innovative 'designer' packaging to make image a priority

Case study: Ty Nant super-premium water

Broaden brand portfolio to target more consumers

Release upscale brand extensions to avoid being stuck in the middle

Create value brands to compete directly against Private Label

Learn from upscale Private Label by using umbrella branding

Co-brand with relevant partners to exploit synergies

Target the convenience channel

Conclusions

CHAPTER 4 APPENDIX

Supplementary data

Private Label in the US

Private Label drinks spending in the US by segment

Private Label food spending in the US by segment

Private Label personal care spending in the US by segment

Private Label in Europe

Private Label drinks spending in Europe by segment

Private Label food spending in Europe by segment

Private Label Personal care spending in Europe by segment

Private Label in France

Private Label in Germany

Private Label in Italy

Private Label in the Netherlands

Private Label in Spain

Private Label in Sweden

Private Label in the UK

Definitions

Research methodology

Future readings

Report writing team

How to contact experts in your industry

List of Tables

Table 1: US Private Label CPG spending 2000-2010, (US$ m)

Table 2: US Private Label share of total CPG spending, 2000-2010 (%)

Table 3: Europe Private Label CPG spending, 2000-2010 (US$ m)

Table 4: Europe Private Label share of total CPG spending, 2000-2010 (%)

Table 5: Private Label spending per head Europe and US, 2000-2010 (US$),

Table 6: Europe Private Label CPG spending, by country, 2000-2010 (US$ m)

Table 7: Europe Private Label share of total CPG spending, by country, 2000-2010 (%)

Table 8: Premium products' share of European CPG sales, 2000-2010 (%)

Table 9: Premium products' share of European fragrance sales, 2000-2005 (%)

Table 10: Broadband Internet users as % of population, Europe and US, 2001-2004

Table 11: US Private Label drinks spending, 2000-2010 (US$ m)

Table 12: US Private Label share of drinks spending, 2000-2010 (%)

Table 13: US Private Label food spending, 2000-2010 (US$ m)

Table 14: US Private Label share of food spending, 2000-2010 (%)

Table 15: US Private Label personal care spending, 2000-2010 (US$ m)

Table 16: US Private Label share of personal care spending, 2000-2010 (%)

Table 17: Europe Private Label drinks spending, 2000-2010 (US$ m)

Table 18: Europe Private Label share of drinks spending, 2000-2010 (%)

Table 19: Europe Private Label food spending, 2000-2010 (US$ m)

Table 20: Europe Private Label share of food spending, 2000-2010 (%)

Table 21: Europe Private Label personal care spending, 2000-2010 (US$ m)

Table 22: Europe Private Label share of personal care spending, 2000-2010 (%)

Table 23: France Private Label CPG spending, 2000-2010 (US$ m)

Table 24: France Private Label share of total CPG spending, 2000-2010 (%)

Table 25: Germany Private Label CPG spending, 2000-2010 (US$ m)

Table 26: Germany Private Label share of total CPG spending, 2000-2010 (%)

Table 27: Italy Private Label CPG spending, 2000-2010 (US$ m)

Table 28: Italy Private Label share of total CPG spending, 2000-2010 (%)

Table 29: Netherlands Private Label CPG spending, 2000-2010 (US$ m)

Table 30: Netherlands Private Label share of total CPG spending, 2000-2010 (%)

Table 31: Spain Private Label CPG spending, 2000-2010 (US$ m)

Table 32: Spain Private Label share of total CPG spending, 2000-2010 (%)

Table 33: Sweden Private Label CPG spending, 2000-2010 (US$ m)

Table 34: Sweden Private Label share of total CPG spending, 2000-2010 (%)

Table 35: UK Private Label CPG spending, 2000-2010 (US$ m)

Table 36: UK Private Label share of total CPG spending, 2000-2010 (%)

Table 37: Definitions of terms

List of Figures

Figure 1: Retailers are clarifying customer purchase choices

Figure 2: Famous Brands are differentiating to maintain share

Figure 3: Few consumers believe it is important to be seen with the right brand

Figure 4: Mainstream brands risk being 'caught in the middle'

Figure 5: Age group consumption of Private Label paints an unclear picture

Figure 6: Men expect Famous Brands to cost more in drinks categories

Figure 7: Women link Famous Brands with a better image overall

Figure 8: Men have a more favorable perception of Private Label's image than women

Figure 9: Hybrid ranges have benefited the UK Private Label market

Figure 10: Safeway's Private Label offering will be much improved in 2006

Figure 11: The food market has the lowest Famous Brands adherence

Figure 12: Alcoholic drinks remain a stronghold for Famous Brands

Figure 13: Famous Brand fragrances remain resolute against Private Label

Figure 14: US consumers expect a larger discount on Private Label

Figure 15: High-low spending redefines income norms

Figure 16: High-low spending on Private Label is inconsistent

Figure 17: Most consumers believe that purchasing Famous Brands means paying for their marketing efforts

Figure 18: Private Label is increasingly adopting upscale umbrella brands

Figure 19: Reward card data can empower retailers

Figure 20: Nations have varying levels of trust in CPG product claims

Figure 21: Inconsistency impacts consumer trust in Private Label

Figure 22: Older consumers are most likely to choose between Famous Brands and Private Label at point-of-sale

Figure 23: Consumers are happier to switch from Famous Brands to Private Label than vice versa

Figure 24: Stonyfield Farm uses the web to open consumer dialog

Figure 25: Adopt a socially responsible approach to PR campaigns

Figure 26: Use R&D advantages to prolong first mover advantage

Figure 27: Fight upscale Private Label by communicating tangible benefits

Figure 28: Famous Brands must seek to extend functionality

Figure 29: Ty Nant is an example of differentiation through packaging

Figure 30: Kronenbourg's range has expanded to premium variants

Figure 31: Broaden the value spectrum of the brand portfolio

Figure 32: Use umbrella branding to boost shelf presence

Figure 33: Maintain consistency of image to keep customers

Figure 34: Partnering with an 'expert' brand exploits synergies

Figure 35: Famous Brands should dominate convenience products