For several years, private label products have been taking a growing share of supermarket shelves. This progression is as much qualitative as quantitative: the success of private labels can be explained by the move upmarket by retailers, who are now using their own brand as a highly differentiating, added value, and powerful lever to build customer loyalty. Christophe Vanackere, CEO of Trace One, the global specialist in e-collaborative solutions for managing consumer goods, recently wrote about this revolution in an article.
For nearly ten years, private labels have been growing at an annual rate of 2-3% in France. It should grow even more this year and reach 6-8% as a reaction to the health crisis. In the US, Covid-19 has driven almost 20% of consumers to buy more private label products. According to London-based market research specialist Datamonitor, more than two-thirds of shoppers in the UK believe that own-brand foods are as good as, if not better than, leading famous brands. Hardly anyone had foreseen this trend in the retail sector a few years ago. Indeed, private label products were only expediencies for the signs.
Today, as more consumers turn to private label to bridge the gap between quality and affordability, retailers continue to rapidly introduce new products and lines to elevate their own-brand ranges. Private Label brands have become a reference in supermarkets, even becoming premium products.
This revolution is largely due to changing consumer habits. The French no longer look only at the price to buy a product. They want to eat better and take care of the environment at the same time. These concerns are at the heart of the development of private labels, which explains their rise. In fact, private labels have focused on local products and well-being through a wide range of products adapted to all audiences and budgets.
Carrefour in particular has developed its Carrefour Bio range and Monoprix (part of the Casino group) has launched Monoprix Bio on everyday products.
Private Labels: From The Gravedigger Of Small Producers To Their Main Support
Obviously, the choice of local products implies getting closer to small local producers by signing partnerships. Someretailers , such as Monoprix, are even betting on 100% French origin. “The private label has contributed to radically change the image of the distribution, reversing course in less than ten years from that of the gravediggers of small producers, to their main support. The products that arrive today on the shelves of French supermarkets are fresh, healthy and local.
Mass retailers can guarantee the origin of all private label content and have clearly integrated a virtuous circle for the planet,” stresses Christophe Vanackere, CEO of Trace One, in an article published on the specialized website Economie Matin.
A Marketplace To Bring Together Suppliers And Retailers
Trace One, a company specializing in e-collaborative solutions for managing FMCG products, is proposing to help retailers make the transition to private labels. How can they do this? By supporting them in their needs, from the design stage right through to shelf placement. To do this, Trace One has designed a suite of applications enabling retailers to follow their specifications and ensure the safety and quality of their products.
This Marketplace identifies reliable suppliers and manages tenders efficiently from a single space. Trace One is also a powerful weapon for marketing innovative products that will meet consumer expectations. A definite advantage in an increasingly competitive retail environment. Trace One currently connects over 5,000 manufacturers with major retailers around the world.