In the United States, private brands account for less than 20 percent of all retail until sales. We love our branded products more than we want to save money. :-)
But in Western Europe, the story is much different. More than one-third of unit sales involve private brands.
As Nielsen reports:
“Price is one factor helping bolster private label growth in Europe. Notably, private label can be as much as 30 percent less expensive than brands across the Big 5 Countries. Across categories, private label has a price index of less than 60 percent in health, personal care, and home care, compared with 90 percent in perishable fresh foods, where the average prices are much closer to those of brands.”
“However the success of private label isn’t just about cost. Retailers in Europe have also created new demand, particularly by offering new premium private-label lines and by launching dine at home meal offerings with bistro or restaurant quality foods, a trend that is most evident in the U.K.”
Click the Nielsen chart to read more.