Growth in Private Lables in FMCG / CPG industry is enhanced in specific categories and geographies by the fact that the consumers don’t believe the products in that category are differentiated at all, so they care only about price. This is another area where private-label products often gain a foothold.
Adding to the complexity, the perception of what is a commodity, and therefore should be purchased on the basis of price, differs between regions and across geographies. In Germany, for instance, more than 60 percent of consumers resist buying branded toilet paper: They do not believe it is any better than the (cheaper) private-label variety.
In general, Europeans are very receptive to private-label products in the areas of chilled and frozen foods, dairy, and bakery—many of which they believe to be the same quality as the branded alternatives.