The largest markets for private-label products are found primarily in the more mature European retail markets. There are six key consumer behavior threshold levels that tie directly to concerns around the COVID-19 outbreak. The value for money proposition of private label is also seen to be a major factor in its popularity, and overall, the quality of products is seen to be improving and there is an increase in the number of people recommending them.
Overall, there is a clear focus from retailers to up private label’s share of their sales with an enhanced focus on the development of premium and niche private label products and enhanced labelling, all of which bodes well for the rapid evolution of this sector in South Africa.
AUTHOR . Perspectives on Retail Technology - the Effect of Digital on Retail, The Hidden Opportunity In South Africa's Growing Appetite For Convenience. Cathy Siegner. Overall, however, the biggest contribution to incremental growth in private label is coming from perishables, with products like prepared convenience meals, chicken, and pre-packed cheese driving this growth. And what can we learn from digital disruption in other industries?
We’re talking about the development of private-label products and the new challenges that this will present for brands and manufacturers across the globe, as retailers develop and market their own products rather multinational name brands to meet changing consumer needs.
This indicates an opportunity to tap into the ability of consumers to now be connected anytime, anywhere. To access the full report, please provide the following info: By clicking on Subscribe, I agree to the Privacy Policy and Terms of Use.
Convenience is a fast emerging trend and is impacting the way consumers shop and interact with products and brands.
“Retailer-branded, private-label products … In terms of the demographic profile of South African consumers choosing to purchase private label goods, 55 percent of sales currently come from LSM 7-10, but the growth driver in 2018 has been the middle LSMs which have contributed approximately 30 percent of sales.
However, some retailers have expanded to previously underserved areas, bringing private labels to more South Africans, resulting in a shift in perception and more willingness to try private labels. A Nielsen e-commerce study across 30 countries indicates FMCG online sales are growing an estimated five times faster than offline sales, and by 2020 global FMCG e-commerce will be worth more than US$400 billion and comprise 10% – 12% of overall FMCG market share.
There’s a new retail revolution underway, and it’s going to affect the global food industry in ways the market hasn’t seen before. The revolution comes at the hand of store-branded products, which continue to gain share across all major geographies around the globe. This is due to the fact that lower LSMs don’t have as much access to private label products as the majority of their shopping trips are done within traditional trade outlets, where these types of products are not as prevalent and available for purchase. Previously smaller super groups in private label like baby care, personal care and confectionary are achieving double digit growth, which is well ahead of branded product growth.
In fact, Nielsen’s Total Consumer Report from March 2018 found sales of private-label products have been on the rise since 2016. By placing the shopper at the center of decision making, manufacturers can better collaborate with their retailer partners to address the inefficiencies of trade spend—one of the largest costs of doing business. As a result, FMCG players need to adapt to circumstances and provide integrated shopping experiences that allow consumers the freedom of greater choice of solutions that meet their needs.
There is a new retail revolution underway, and it’s going to affect the food industry across the globe over the next five years in ways we have never seen before.
This prevalence of connectivity provides multiple touchpoints for manufacturers and retailers to interact with consumers, and leverage localisation to improve engagement through personalised and in-the-moment recommendations. By clicking on Subscribe, I agree to the Privacy Policy and Terms of Use.
https://www.nielsen.com/za/en/insights/article/2018/private-label-surges-ahead-in-south-africa/. In 2018, private labeldollar sales increased 9.8% and unit volume gained 10.6%, while national brands lost 1.3% in units.
In recent years, e-commerce has given brands another way to reach the consumer. Copyright © 2020 The Nielsen Company (US), LLC. Becoming Shopper-Centric: Price, Promotion and the Overall Value Equation, Key Consumer Behavior Thresholds Identified as the Coronavirus Outbreak Evolves. The relentless store expansion by retailers over the past decade has given shoppers more access to private label and to brands.
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