Private labels are all around us, and have become a permanent feature in our day-to-day existence. Examples are Ikea, Tesco’s own brand and Zara. Private labels are generally considered a good alternative to A brands due to the excellent price/quality ratio they offer. Private labels are nowadays taken as fully-fledged brands. New ones find their way to supermarket shelves all the time.

In Dutch supermarkets, own brands have managed to carve out a hefty market share for themselves. Research shows that recessions add to their success. In times of recession, consumers en masse divert to cheaper brand items, including own brands. As the recession wanes, large numbers of consumers stick with these own-brand products, causing the market share of manufacturers’ brands to shrink structurally.

In 2007, Harvard Business Press published Kumar and Steenkamp’s Private Label Strategy. The basic premise of this book is that FMCG manufacturers are nowadays forced to compete with their major customers: retail chains like Tesco, Wal-Mart and Albert Heijn. This book focuses on the latest strategies used by retailers, and challenges manufacturers to come up with an effective response. The book also provides detailed examples and hands-on techniques managers can use in today’s radically changing branding landscape.

• Moers, P.H.J.M. (2006), Industrial marketing in the new branding arena (how to survive the war between private labels, private brands and manufacturer brands). Kluwer, Amsterdam.
• Jong, K.A.M. de (2007), Private labels in Europe (trends and challenges for retailers and manufacturers). IPLC/ International Private Label Consult, Vught.