Focus on International - World of Private Label

Three Days In Amsterdam

July 3, 2013
Trans

Two layovers and 15 hours after leaving Omaha, Neb., I arrived in Amsterdam for my first taste of the Private Label Manufacturer’s annual “World of Private Label,” the world’s largest private brand trade show.

The show was May 28-29, with pre-show seminars May 27 at the striking RAI Exhibition Center, whose modern facilities and soaring barreled ceilings are breathtaking.

Jean-Jacques Vandenheede, The Nielsen Company Retail Insights Director -Europe, delivered the first presentation, a look at country-by-country market share trends in his presentation titled “Private Label On the Rise.” He detailed the rise of private brand in Europe country-by-country, category-by-category and customer-by-customer.

Insights included:

Private brand growth is diverse and rarely a smooth and continuous progress.

• Tiering has limited reach.

• Price is not the irresistible differentiator.

• Private Brands win more on value than price.

• AND everyone is a private brand customer.

• He closed with this intriguing list of what he called “Retail Brand Truth.”

Retail brands will keep on growing. Growth will neither slow down nor speed up. Retail brands are not products of economic struggle. Retail brands are not a quick win. Retail brands have limited contribution to retailer equity. Retail brands are not a fatality for brands. Price is not the irresistible differentiator. Retail brands win more on value than on price. Retail brands are not for low budget shoppers (actually the contrary). Success or failure does not travel across countries and/or categories.

Kitty Koelemeijer, professor of marketing at Nyenrode Business Universiteit, served as a contributing editor of PLMA’s 2013 consumer opinion survey, “Today’s European Shoppers.”

The research she presented included 11,000 consumers in 14 countries and was developed by PLMA, working with SurveyLab of Great Britain.

Countries surveyed included Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, the Netherlands, Norway, Poland, Spain, Sweden and Great Britain. Answers were weighted for pan-European tabulation.

Unsurprisingly, the study revealed private brand plays a fundamental role in the lives of shoppers across Europe and market share will continue to expand. It found:

• 46 percent buy private brand products “frequently.”

• In the next year, one in four believe they will buy a larger amount of own brands than currently.

• Eight in 10 consumers will stick with private brand when the economy improves.

Important factors that encourage customers to buy more private brand products were:

• 57 percent cited overall satisfaction with private
brand products.

• 49 percent were looking for better quality.

• 46 percent would like more special offers.

• 43 percent were looking for more variety.

Anne Sainte-Marie, member of the International Marketing Department, Responsible for Private Label, at Intermarché made the last presentation of the day, a case study titled, “Intermarche, Innovation and Click-and-Drive Marketing.”

This year’s edition included 50 national and regional pavilions. New pavilions in the food section included Ecuador, Croatia, Dutch province North Brabant, Denmark, Italy, Lithuania, Slovenia, South Korea, Hungary, Egypt and Poland. In the Non-Food section, new pavilions included  Mexico, Hungary, Spain, China and Slovenia.

Attendees of the U.S. show in Chicago found a few familiar features:

The Idea Supermarket displayed private brand packaging and design from of more than 60 retailers around the world including: Picard, Target, Coop, Rexall, Delhaize, Migros, Axfood, Markes & Spencer and Edeka.

The New Product Expo showcased more than 350 innovative products in private brands including everything from product development to marketing and packaging.

This year’s PLMA World of Private Label trade show brought record crowds from around the globe discovering new and exciting products at more than 3,800 exhibit stands from 2,100 exhibitors and 70 countries.

 The show is a must-attend event. The exhibitors are distinctly European, which for American retailers and manufacturers increases the odds of discovering the next great differentiating innovation. 

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