Abstract
This paper presents an overview of Private Label Brands by considering both the status quo and emergent trends in this sphere. The research’s primary focus is profiling Private Labels in the country of South Africa, with developments from abroad are juxtaposed against the local retail landscape. Global market trends are brought to the fore at the end of the paper. Within a South African context, despite the proliferation of retail floor space, Private Labels have not followed suit. As such, Private Label Brand adoption sits at a paltry 18 % (little moved in the last 5 years) compared with a pan European average penetration rate of 30 %. The reasons for this are varied, but a lack of retailer R&D has almost certainly hampered growth. Yet, underlying economic fundamentals hold much potential for retailers of such wares. Globally, Private Label market share is expected to roughly double from 25 % to 50 % by 2025 (Rabobank, Retail private label brands in Europe: An inseparable combination, 2011) due to the strong development of such products and integrated supply chains, in the process earning increased returns for major retailers. Moreover, it is expected that there will be a significant shift in the market, with retailers abandoning ‘B-brands’ and replacing these with their own substitute Private Labels. The future of such brands appears rosy, assuming consumers can be convinced of their merits!
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Acknowledgements
The authors would like to thank Sebastiaan Schreijen from Rabobank for his suggested improvements to the paper, as well as supplying additional information to facilitate this process.
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Beneke, J., Montandon, A. (2014). Private Label Brands in Focus: An Overview of Market Insights and Trends in South Africa and Beyond. In: Gázquez-Abad, J., Martínez-López, F., Esteban-Millat, I., Mondéjar-Jiménez, J. (eds) National Brands and Private Labels in Retailing. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-07194-7_18
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DOI: https://doi.org/10.1007/978-3-319-07194-7_18
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