Private label is under pressure in all major categories in the Netherlands as retailers’ attempts at introducing lower value private label products to counter the growth of hard discounters has not been particularly successful because the quality was not comparable, says IRI.
This can be re-positioned, however, as regular private label products are considered to be of good quality, and some categories are managing to battle the brands: coffee, eggs, natural dairy and snack nuts are all growing well.
“Private label promotion activity is lower than that of leading national brands. The promotional share for private label is decreasing further in categories with strong national brands, as uplifts are generally higher for these brands than for private label. Private label manufacturers need to invest in proven promotional activities where they will see a good return of investment.”
Private label also needs to “be distinctive and create shopper preference” if it wants to grow, rather than using it as a defensive brand, says IRI. One way to do this is to add value by channeling consumer trends such as health and sustainability as well as increasing the quality of products.