Is Private Label Peaking? [REPORT]

By Marshal Cohen, Chief Industry Advisor, The NPD Group

The private brand dynamic is a topic we’ve written about extensively over the past few years. Private brand is gaining dollar share in key general merchandise industries, representing nearly one-third of U.S. sales in some industries. In industries like office supplies, retailers have moved entire departments to their own private labels. But our research indicates that more private brands aren’t necessarily the answer across apparel, food, technology, and other industries we track; retail may have reached an inflection point. How can retailers determine the right mix of private and national brands for the categories they play in, and what can brands do to ensure they remain part of the mix?

Summary:

•     The most successful retailers are not necessarily the ones with the most brands; too much product choice can dissuade consumers from purchasing.
•     Retailers can determine the right mix of private and national brands in their assortments using custom formulas based on point-of-sale data at the store level.
•     These formulas can also help manufacturers choose the best retailer partners by understanding where they fit into a retailer’s assortment—and how to compete in a saturated world.

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