Karolina Galka
Alexy Celis
Dominique Tourrès
Loïc Sèbe
Béatrice de Ferrières
Introduction
A private label is a retailer own brand that can be sold
only in the retailer group stores (art. 62 – NRE act of may 15th 2006).
Example : « Marque Repère », « Monoprix Gourmet », « Mieux
Vivre Bio», « Casino Délice », « Reflet de France », etc.
1 out of 3 purchased product is a private label*
A private label is 37% less expensive than a national
brand*
Private labels keep on growing , near 10% in turnover
per month*
Each retailer has its own label and extends its range of
private labels
Consumer
68% believe that private labels have nothing to envy
to the national brands (Nielsen 2008)
A household spend per year 25% of his budget in
private label (50% for students) (Nielsen 2008)
Performances of private labels
X 2 in 15 years
Market share Market share
+0,8
+1,5 +2,3
+2,6 points of
+1,2 evolutio
+2,8 n.
+1,9 Casino
+2,5 leader
+3,4 with
+1,5 37,9% of
+1,5 market
+4 share
+5,4 and +5,4
points
Performances of private labels
Turnover evolution in 2007 (%)
Price strategy
No marketing costs
Every retailer order together volume effect
Price competitiveness & Higher profitability
Differentiation strategy
Each retailer has its own specific private label
Margin
Margin
Margin
Customers
Strategies of the private labels
Operational result / Added Value
Private Labels Non Producing Firms 7%
Advertsing expenses / Turnover < 1% 5%
1% < Advertsing expenses / Turnover < 4% 9%
4% < Advertsing expenses / Turnover < 8% 18%
Advertsing expenses / Turnover >= 8% 12%
Less than 20% of the turnover Private Labels Producing Firms 10%
Advertsing expenses / Turnover < 1% 8%
1% < Advertsing expenses / Turnover < 4% 9%
4% < Advertsing expenses / Turnover < 8% 10%
Advertsing expenses / Turnover >= 8% 13%
Between 20% and 80% of the turnover Private Labels Producing Firms 12%
Advertsing expenses / Turnover < 1% 16%
1% < Advertsing expenses / Turnover < 4% 6%
4% < Advertsing expenses / Turnover < 8% 15%
Advertsing expenses / Turnover >= 8% 6%
Over 80% of the turnover Private Labels Producing Firms 14%
Source: CREDOC 2005
Innovation,
Adaptation to the new ways of consumption :
Healthy / Natural
Sophisticated product (premium)
Environmental packaging & product
Sustainable development
Ease of use packaging,
New trends & challenges (2/2)
Challenges
Transfer private label as the favorite brand of
consumers (advertising since the 1st January
2007),
Growth despite price down of national brands
(LME law) and launch of low cost national
brand products
Growth despite financial crisis (boom of hard
discount)
Conclusion
Private labels are a major actor on the food
market and influence it on :
Structure : With more than 30% of the market
share, Private labels are on direct competition
with their own suppliers / national brands
Conducts : Focus now on innovation,
communication & every day low price, Private
labels are the price reference
Performances : +75% of new products in 2
years, +10% of turnover per month, Private
labels pull and monopolize the growth of the
food market.