Consumers Taking Charge of Private Labels, Says Report

November 21, 2011
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Factors such as increased use of technology and social media have led to one of the biggest changes in the private label industry: consumer endorsement, says the report “Private Label Trends 2012: The Year of the Consumer” from London-based research firm Planet Retail.


“Retailers are increasingly involving shoppers in the decision-making process for their private labels - whether that is simply providing feedback or suggesting entirely new product lines,” explains Natalie Berg, research director for Planet Retail.  “Asking customers to approve their products not only instills trust but, crucially, ensures high standards for private label items.


“Although this trend is still in its infancy and predominantly taking place in Europe, Planet Retail believes that there is a huge opportunity for retailers around the world, particularly in North America. Our new report highlights Walmart-owned Asda and Carrefour as well as national players Loblaw in Canada and Migros in Switzerland as being at the forefront of this development.”


Although value is still a deciding factor, today’s consumer is considered to be well informed and has higher expectations of grocers then in pervious years, explains the report.


“These shoppers are trading up or down whenever they want, armed with information and empowered by price transparency. They expect retailers to listen to their views and react accordingly,” says Berg. 

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