PLMA 2013: welcome to the world of private labels!

The numbers speak clearly: on the average, more and more consumers choose retailer brand products.

Perini Journal Perini Journal

This year, too, the month of May (28-29) saw Amsterdam’s Rai Exhibition Centre play host to the biggest private label trade show: PLMA. Protagonists were the 2100 producers coming from 70 countries throughout the world with over 3800 booths.

The trend is certainly on the rise; in recent years, store brand products have been chosen by a growing number of consumers.

PLMA together with Surveylab (leader in online research) have made a complete survey that reveals how store brand products are increasingly present in European homes. The countries taking part in the survey are Belgium, the Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, the Netherlands, Norway, Poland, Spain, Sweden and the UK. PLMA’s President, Brian Sharoff, states: “The survey demonstrates how retailer brands play a foundational role in the lives of purchasers and their market share will continue to expand”. According to the survey, 46% of European consumers purchase these frequently. It is estimated that in 2014 one out of four consumers will buy a greater quantity of private label products.

Without a doubt, the economic crisis that Europe is currently experiencing has influenced the success of PL products. In many cases, consumers prefer to buy a PL product that guarantees optimal quality at a lower price. But form the data, it emerges that many consumers want to remain faithful to the retailer brand even when the crisis will be overcome, given the degree of satisfaction they have experienced.

Nielsen data examined for PLMA’s 2013 International Private Label Yearbook highlight that the market share of PL products in Europe has grown in 18 countries out of 20.

But let’s see data related to central European countries in detail:

- In Switzerland and in Spain, the best selling products are PLs (respectively 53% and 51%);

- Market share has exceeded 40% in Belgium (41%), Germany (42%), Portugal (44%) and the UK (45%);

- France and Austria exceed 30% (35% the former and 39% the latter).

Eastern Europe is not standing by watching the world of private labels but is actually actively participating:

- Hungary and Slovakia have exceeded 30%;

- Poland has witnessed the greatest individual increment for PLs.

Southern Europe is keeping pace:

- Italy and Turkey have attained a share in excess of 20%;

- Greece has reached 24%.

In Northern Europe, the figures are significant:

- Finland has reached and exceeded 29% ;

- Sweden, Denmark and the Netherlands have increased their market share by one percentage point.

And the paper field?

In most European countries, the volume of PL paper products sold exceeds 50%, attaining a 75% share in Germany and 82% in Spain.

Let’s see what is happening in the world of toilet rolls…

Volume has increased:

- in Belgium, going from 77.1% in 2011 to 77.8% in 2012;

- in the Netherlands, from 39.8% to 41.2%;

- in Poland from 54.2% to 58%;

- in Portugal from 77.6% to 77,9%;

- in Slovakia from 59.5% to 60.3%;

- in Spain from 83.6% to 83.9%;

- in Sweden from 52.1% to 54.3%;

Volume has decreased:

- in Switzerland (-2.2) while still having a market share of 68.8%;

- in the UK (-3.1%), maintaining 46.2%;

- in Norway (-0.2%);

- in France (-1.6%);

- in Finland (-0.5%);

- in Denmark (-4.9%);

- in the Czech Republic (-3.3);

- in Austria (-0.6%).

What will be the future of private labels? Will they continue growing or will the major brands find an effective strategy to surpass them? The game is still wide open! *

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