Saturday, September 22, 2012

Meeting the challenge from private label brands.

Giving away hundreds of bags of groceries, each filled with store-brand products along with coupons to encourage more private label shopping? That is just one sign of the aggressive strategies that some stores are taking to promote their private label brands— products that offer retailers the opportunity for greater margins and profitability over selling the products of traditional consumer packaged goods (CPG) companies. 

From a CPG company’s perspective, the growing popularity of private label brands has long moved from annoyance to competitive threat. Consumers are far more accepting of store brands than they were a decade ago. The Accenture 2012 Store Brand Survey, which sampled more than 500 US consumers about their attitudes toward store brands as well as national-brand products, found that half of those surveyed believe the quality of private label brands to be equal to that of national brands. 

Read this article by Larry Thomas , Robert Berkey , Till Dudler , Yin Sern Lim of Accenture  in full here 

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