scholarly journals Proliferation of Private Labels in Food Retailing: A Literature Overview

2016 ◽  
Vol 8 (6) ◽  
pp. 63 ◽  
Author(s):  
Rainer Olbrich ◽  
Michael Hundt ◽  
Hans Christian Jansen

<p>This article provides an overview of private-label research by focusing on the food retailing sector. To explain the proliferation of private labels, we identify key drivers by reviewing the determinants discussed in prior literature. This article identifies the conditions that support the proliferation of private labels—retailer concentration and retailer pricing autonomy—and describes the nature of competition between private labels and national brands. It also highlights the drivers of private-label purchases by providing an overview of brand-related determinants, price and risk-related determinants, quality aspects, sociodemographics, and consumer purchasing behavior. The article concludes by proposing three areas for future private-label research.</p>


2020 ◽  
pp. 231971452096870
Author(s):  
Sheikh Basharul Islam ◽  
Suhail Ahmad Bhat ◽  
Mushtaq Ahmad Darzi

Private-label brands (PLBs) are spreading their operations in all product categories and have marked their presence in almost all types of retail formats. They are posing stringent competition to national brands (NBs), be it offline (organized and unorganized) retail or online retail. Besides being favourites of value-conscious Indian consumers, PLBs are becoming a key focus of channel partners as well. In this context, the present research article is aimed at providing insights about how PLBs are able to garner the profit-centric interests of channel partners and how they are affecting the distribution of NBs in the unorganized retail sector. The study is based on information collected through semi-structured interviews with distributors and retailers from Haryana and Punjab. A thematic analysis was performed to draw meaningful inferences from the responses collected through the semi-structured interviews. The results reveal that channel partners’ interest in the high margins of private labels and their interest in maintaining long-term relationships with the latter make NBs vulnerable on parameters such as sales effort investment, in-store visibility, ordering quantity and frequency and numeric distribution. This study provides bases for understanding private label operations in the unorganized retail sector in India.



2014 ◽  
Vol 46 (4) ◽  
pp. 575-591
Author(s):  
Rickard James Volpe

This article investigates the extent to which national brand and private label (store brand) prices behave differently as food price inflation changes. Empirical tests using a range of indices support the hypotheses that rising commodity and fuel prices lead to relatively larger surges in private label prices. When food prices are rising or high, the average price difference between national brands and private labels shrinks. The findings have implications for understanding the welfare effects of private labels. Moreover, they suggest that food price inflation is stronger for low-income households as food prices rise.



Author(s):  
Luisa Fauvel Zamora ◽  
María Puelles Gallo ◽  
Gérard Cliquet

This chapter aims to develop ideas regarding Over The Counter (OTC) medicines under private label and national brands within the context of retail network, because this is a precondition to selling their retail private labels and OTC and national brands in countries where this practice is currently forbidden by law. The purpose of this chapter is threefold. First, assessing the situation of the sale of OTC medicines in the European Union; second, advancing in consumer behavior analyses in countries where is not possible to buy OTCs in supermarkets; third, understanding the factors behind purchase intentions of private label and national brands OTC medicines since their conception. An empirical study was carried out. Results indicate a good acceptation from consumer in both cases of OTCs in supermarkets. In general, risks are moderated. Great benefits are perceived from these products when they are allocated on the shelves.



Author(s):  
Álvaro Garrido-Morgado ◽  
Óscar González-Benito ◽  
Mercedes Martos-Partal

This chapter aims to be the starting point to encourage the study of how retailer may improve the private labels performance within the store. In this line, authors present an analysis of the use of the two more common in-store stimuli –price promotions and displays- by explaining the advantages and disadvantages that their use has on different private labels tiers (economy private labels and standard private labels) in comparison with national brands. Then, authors use data of eighteen product categories during a full year from one top ten retailer in the food sector to check if retailers follow the expected use of promotions and displays on private labels. Finally, recommendations and conclusions about how retailers may optimize the use of analyzed in-store stimuli are presented.



Author(s):  
Patrick Sebastian Holzer ◽  
Thomas Bittmann

AbstractThe present study investigates the underlying factors of price stickiness in German food retailing using fluid milk as a case study. We distinguish the duration between two actual price changes and two regular price changes as measures for price stickiness. Especially in the case of private labels, the choice of proxy for price rigidity has important implications. If we consider (regular) price changes, private label products are more (less) rigid than national brands. Price rigidity increases in the product’s average price. Prices of low priced private labels are rather flexible. Price adjustment of high priced private labels is similarly sluggish compared to national brands. We rationalize this finding with variable mark-ups under imperfect competition. In line with previous research, we find that price stickiness also depends on product attributes, retail formats, menu costs, psychological price points, and time-varying market conditions.



2020 ◽  
Vol 48 (6) ◽  
pp. 575-589 ◽  
Author(s):  
Natascha Loebnitz ◽  
Stephan Zielke ◽  
Klaus G. Grunert

PurposeThis study aims to investigate the impact of social risk and inter-tier brand competition across traditional retailers and discounters on consumers' purchase intentions in the UK.Design/methodology/approachThe authors conduct a 2 (social risk) × 3 (brand type) × 2 (retailer type) between-subjects design (n = 309; UK) experiment employing a Qualtrics online panel in the UK.FindingsThe study shows that while premium private labels (PPLs) are on par with national brands, discounter's PPLs outperform mainstream retailer's PPLs. Furthermore, consumers appear to purchase standard private labels and PPLs for themselves when shopping at a discounter but turn to national brands when shopping for socially risky situations.Research limitations/implicationsWhile Tesco's premium (Tesco Finest*) and standard private label (Tesco Everyday Value) explicitly make reference to the retailer's name, for Lidl's premium (Deluxe) and standard private label (e.g. Milbona), the discounter's name is not visible. This is something this study did not control for.Practical implicationsGiven that Lidl has opened its first US store in 2017 with ambitious expansion plans, our findings provide in particular practical guidelines for how to promote PPLs in countries where the discounter landscape is less saturated than in Germany.Originality/valueThis study provides insights into the understanding of the influence of social risk on purchasing intentions of premium private labels vs standard private labels vs national brands offered by mainstream retailers or discounters in the UK.



2010 ◽  
Vol 63 (11) ◽  
pp. 1142-1147 ◽  
Author(s):  
Magda Nenycz-Thiel ◽  
Byron Sharp ◽  
John Dawes ◽  
Jenni Romaniuk


2015 ◽  
Vol 13 (2) ◽  
pp. 123 ◽  
Author(s):  
Elias G. Rizkallah ◽  
Heather Miller

Motivated by profits and their growing power in the marketplace, retailers have been expanding their private-label brands to include more categories of consumer products and differentiation on quality to reach different consumer segments. This global phenomenon is adversely impacting the performance of national brands, thus creating a conflict between two powerful parties manufacturers of national brands and their large retailers who are supposed to be their helping hands in the marketplace. In this paper, the authors develop a conceptual framework, which captures the complexity and multidimensionality of the situation the stakeholders involved, the interest and power of each, the relationships among them, various strategies they employ, and the outcomes of the conflict. Several hypotheses were examined and tested through the empirical part of this study; for example, would the powers of these parties determine who is the loser and who is the winner or will the verdict be in the hands of the consumers? The study surveyed 281 consumers to assess their attitudes toward and preferences of store brands versus national brands across product categories and the underlying motivations. The paper concludes with recommendations for retailers and national brand manufacturers to win the hearts of consumers rather than exhaust their resources in the conflict.



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