SymphonyIRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. This report explores current and emerging store brand trends and influencing factors across key Western European countries. Retailers and manufacturers with a clear understanding of these trends will forge relationships with consumers that will transcend the economic downturn and fortify their position in the FMCG world of tomorrow.
Introduction
Across much of Europe, the effects of a long-lasting economic downturn are still being felt. While unemployment has shown signs of stabilizing, it is expected to remain high throughout 2010 and well into 2011. Government debt levels are quite high, leading to mandated spending cuts and possible tax increases, as well. Consumers remain apprehensive and are working hard to keep their personal budgets in check.
Store brands are viewed quite favorably in much of Western Europe. In many countries, consumers view store brands as equal to, or even better than nationally branded products. But, for several reasons, store brand development varies at the country, market, retailer and category level.
Market structure, for instance, varies across Western European countries. Retailer strategy also plays a key role in defining store brand development. The development of store brands will continue across Western Europe. In some areas, the battle for share has been and will continue to be quite intense. In others, the battle is just heating up.
In contrast to strong share gains posted in 2009, store brand share performance has been relatively flat over the past year. Name-brand CPG manufacturers have turned up the heat on private brands. Tactics vary, but the goal is the same: to protect and build share. Nonetheless, retailers have been, and will continue to be, heavily focused on growing the depth and breadth of their store brand offerings, and the promotional support behind those offerings. Today, store brands account for 18.3% of CPG dollar sales and 23.1% of unit sales.
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Select Findings
Store brands are well entrenched and growing across a majority of Western European countries, but share varies drastically at the country level. Structural, econometric and cultural influences weigh heavily on pace and direction of store brand development. For U.S. retailers, lessons learned from the study of European store brand trends are invaluable. Even after achieving sizable share gains over the course of the economic downturn, store brand share in the United States is 18%, less than half of that seen in Spain, and well below that of Germany, the Netherlands, the United Kingdom and France.
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See the complete report in the Special Report - Store Brands: U.S. & Europe Store Brand Trends 2010" pdf.