Monday, April 18, 2011

Private Labels offer margins & leverage.

And all this at the cost of the original category creators - the National and Regional brands.

Private labels, in addition to yielding higher margins for retailers, give them important leverage in negotiating with brands. But at the same time, retailers very much need A brands. Consumers value in-store competition and want brands to benchmark the price competitiveness of their supermarkets, and food retailers need top brands as their price/quality anchors within each product category, the report points out.

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