Retailers and manufacturers must collaborate to secure growth

Despite the ongoing threat of private label, brand manufacturers must collaborate with retailers for long-term sustainable growth, warns retail intelligence firm Planet Retail.

According to Planet Retail’s latest report Private Label: The brands of the future brand manufacturers that use defensive tactics in a weak economy could damage their brand equity.

“In the recession, many brand manufacturers responded to the private label threat by launching their own value sub-brands. While these brands may have helped to retain shoppers from defecting to private label, they could do damage to the brand in the long-run,” said co-author and Planet Retail’s Research Director, Matthias Queck.

The power shift to the retailer in the form of SKU rationalisation and private label development has also led brand manufacturers to seek alternative routes to market.

Natalie Berg, Planet Retail’s Research Director and co-author, commented: “Retailers have been stripping out the middleman for years by pushing their private labels. Brand manufacturers are now recognising an opportunity to do the same by going direct-to-consumer through brand stores, services and online channels.”

However, Planet Retail argues that these tactics are beneficial in terms of driving brand awareness but are unlikely to be profit centres in their own right. The more successful and sustainable strategy is for retailers and manufacturers to work together in the form of joint planning, promotions and co-branding in certain cases.

The report also highlights 10 key trends affecting the world of private labelling. Drawing on best practice examples from retailers around the globe, Planet Retail explores the rise of super premium brands and the future of value lines in a post-recessionary climate.

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For further information please contact:

Renaye Edwards, Senior Marketing Executive
Tel: +44 (0) 20 7728 4985, Email: renaye.edwards@planetretail.net

Natalie Berg, Research Director
Tel: +44 (0) 20 7728 4960, Email: natalie.berg@planetretail.net

Matthias Queck, Research Director
Tel: +49 (0) 69 9621 7581, Email: matthias.queck@planetretail.net

Additional Information:

Trading at very high price points, the new super premium caters to would-be restaurant-goers

Niche sub-brands such as this gluten-free line from Carrefour are gaining shelf space in Europe

Private label has flourished in concentrated markets like Switzerland and the UK.

About Planet Retail:

Planet Retail is the leading provider of intelligence on the global retail industry, monitoring more than 7,000 retail banner operations as well as market developments in 211 countries. With over 15 years of industry insight, Planet Retail is a brand trusted by more than 3,000 organisations worldwide, delivering up-to-the-minute news, analysis, market research and digital media via www.planetretail.net. Planet Retail has offices in London, Frankfurt and Tokyo.