Eurocommerce and the European Retail Round Table have launched a new report on the benefits of private label, revealing that retailer brands now make up some 30 per cent of the grocery retail market in Europe. The report, Retailer Brands- ” Serving Consumers, SMEs and Innovation”- is based on a review of the current knowledge of the European grocery sector. And it focuses on four key areas: the benefits to consumers, how retailer brands foster competition and choice, how retailers innovate with private-label products, and how small and medium-sized enterprises thrive through their production. “Our report shows that consumers value retailer brands, trust them, and buy them again and again. While price remains a top priority for consumers, they also look for quality and the ability to compare products and switch to what suits their wishes and needs,” commented Christian Verschueren, director-general of EuroCommerce.
REPUTATION IS VITAL IN THE NEW PRIVATE LABEL – With a range of product options from premium to budget ranges, and organic, free-from and Fairtrade, retailer bands make a real contribution to customer satisfaction. Based on this findings, the report recommends that policymakers resist pressure to treat retailer brands as an unfair practice, and recognize private-label offerings as a significant driver of consumer choice and innovation. Susanne Czech, director-general of ERRT, noted that: ” In a highly competitive environment, retailer brands are a means for retailers to differentiate and provide consumers with real choice“. For example if retailers were all selling branded goods only, they would only compete on price. This would fuel a ‘price race’ to the bottom, with none of the benefits of choice, which retailer brands offer.