Sunday, August 12, 2012

Big brands under siege from private labels.

Australians are now spending $20 billion a year on the private label products of the major supermarket chains like Coles and Woolworths and this is set to increase another $10 billion over the next five years as cost of living concerns squeeze household budgets.

"The recessive economic climate has been a strong driver of private-label growth," said IBISWorld general manager Karen Dobie.

"Households have been reining in spending, paying off debt and increasing savings. This, coupled with an increase in the range of private-label products available, has led many consumers to make the shift to home brands."

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