Monday, March 12, 2012

Are Private Labels and National Brands equal?

The price difference between National Brands and Private Labels has fallen significantly over time, possibly because Private Labels are increasing in both quality and market share relative to National Brands.

Private Labels are now promoted heavily, and promotions are more likely to occur in product categories with a large number of competing National Brand brands, suggesting that in many cases, Private Labels are priced and promoted to maximize market share within product categories.

Over the past two decades, private label food products have grown steadily in sales and often directly compete for market share with national brands. This competition lowers prices and increases product choices for consumers. 

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