Views On Private Label Positive In Europe
Published on Nov 21 2014 4:38 AM in Private Label
In Europe, Switzerland has the highest private-label share, at 45 per cent, followed closely by the UK and Spain, a survey has found.
The Nielsen Global Survey of Private Label polled more than 30,000 Internet respondents in 60 countries to understand how consumer perceptions about private-label quality, value, assortment and packaging translate into sales around the world.
In Europe, Switzerland has the highest private-label share, of 45 per cent, followed closely by the UK and Spain, at 41 per cent each. Private label is less developed in Eastern and Central Europe, where share varies greatly, from a high of 24 per cent in Poland to a low of 5 per cent in Ukraine.
Perceptions about private label are overwhelmingly favourable. Almost three quarters of global respondents (71 per cent) say that store-brand quality has improved over time, according to the new study by Nielsen, a global provider of information and insights into what consumers watch and buy.
Price is the primary driver of purchase among 70 per cent of global respondents, but quality is important, too. Two thirds (67 per cent) believe that private labels offer extremely good value for money, according to the Nielsen data.
While opinions are positive, private-label development varies greatly around the world. Store-brand value share is at or above 15 per cent in the developed regions of Europe, North America and the Pacific.
In developing regions, it is below 10 per cent in most countries in the study. In fact, private-label share is 5 per cent or less in markets such as China, India and Brazil.
"Private label is most developed in Europe, particularly in Western markets, where sales account for roughly $1 of every $3 spent in the consumer packaged-goods market," said Jean-Jacques Vandenheede, director of retail industry insight, Nielsen Europe. "Share of basket for even the heaviest private-label buyers hits a tipping point around 50 per cent because brands have the growth advantage."
Private labels have become an essential staple in consumers' shopping baskets, and perceptions are overwhelmingly positive in the region. Seventy (70) per cent of European respondents believe store brands are a good alternative to name brands, and 69 per cent believe that they offer good value for money. Only one third (33 per cent) believe that private label is not suitable when quality matters.
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