Private-label sales make up some 30 per cent of the grocery retail market in 15 European countries, claims a new report prepared by EuroCommerce and the European Retail Round Table (ERRT). However, the degree to which consumers choose these products varies across countries and product categories, as retail markets remain driven by national consumer preferences.
The report, Retailer Brands – Serving Consumers, SMEs and Innovation, reveals that consumers value retailer brands, trust them, and buy them continuously.
A recent Nielsen survey for PLMA showed that 70 per cent of respondents believe private labels to be a good alternative to name brands, 69 per cent believe that they offer good value for money, and 71 per cent believe that retailer-brand quality had improved over time.
Value for money remains the key criterion for consumers buying retailer brands (73%), followed by quality (37%), special offers or vouchers (34%), taste (30%), and trust and confidence in the retailer (24%). Over 60 per cent agree or strongly agree that the retailer-brand products that they bought were as good, if not better, than manufacturer brands.
The key findings in this report point to the need for public authorities and policymakers to recognise the role of private-label brands in helping consumers to buy high-quality food at reasonable prices.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
