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Year of publishing 2020

Responsible consumer behaviour is central to the social debate on climate change and sustainability. It is therefore not surprising that food retailers in particular are explicitly involved in the discussion with visible and measurable action. At IPLC we wanted to better understand how retailers across Europe have defined their agenda to address all these objectives. What measurable targets were set and what has been achieved so far? We believe our research is relevant for both retailers and suppliers. For retailers it is important to assess how their objectives and actions compare with competitors in their market and what they can learn from initiatives taken in other countries. For suppliers – growers and private label manufacturers alike – it is crucial to understand what is on the sustainability agenda of their retail clients and how they can respond to this to support them in achieving their objectives. We expect this report will provide insight for all participants in this market sector. Not only where it stands today but also in identifying areas of growth and opportunity for the future.

Year of publishing 2018

Value added private labels (VAPLs) have become important within the private label architecture of retailers across Europe. Apart from margin improvement, they are crucial to differentiate from the competition. It allows retailers to take unique initiatives to meet specific consumer needs, helping to build shopper loyalty. In our definition VAPLs include Premium, Organic, Free From, Eco-friendly and Regional private label. At IPLC we wanted to better understand and define the position of VAPLs in the private label architecture and strategy of retailers. We started with an analysis of a range of academic papers published over the past few years, relevant to the subject. We followed this with store checks in 25 retailers across 9 countries. We then conducted interviews with senior managers in the private label industry. Finally, we added our own local experience and knowledge as retailer brand specialists in an effort to create some transparency in the discussion, enabling us to make meaningful predictions and recommendations. The IPLC research report on Opportunities in the Value Added Private Label Market, will deliver a unique insight into a developing and exciting area of growth for retailers and suppliers alike. We hope it will provide unrivalled insight for all participants in this market sector. Not only where it stands today, but identifying areas of growth and opportunity for the future.

Year of publishing 2017

In the first 2 months of 2017 IPLC consultants interviewed 113 senior managers from its network of private label manufacturers in 16 different European countries. The companies were from a range of product sectors. In the first 2 months of 2017 IPLC consultants interviewed 113 senior managers from its network of private label manufacturers in 16 different European countries. The companies were from a range of product sectors. The concentration of retail food market created a situation where a few powerful buyers interface with many suppliers. With over capacity in manufacturing this has created an environment where there is major downward pressure on pricing and margins for private label suppliers.  At IPLC we felt that the conditions that prevail in the market required better understanding from the manufacturer’s point of view, specifically on the relationships that they have with their main retail customers.

Year of publishing 2016

Market shares of discount retailers throughout Europe continue to grow as they excel in minimising the quality gap and in maximising the price gap with national brands. Mainstream retailers have tried to keep shoppers in their stores by offering low-priced products in no-frills packaging. This strategy has failed dramatically, however. To identify the most effective strategy to counterbalance discount retailers like Aldi and Lidl IPLC researched the private label architecture of mainstream retailers in nine EU countries. The research reveals that mainstream retailer budget private labels beat discount retailers on price. However, budget private labels offered by mainstream retailers appeared of a significantly lower quality than the branded product. Negative effects resulting from this strategy cannot be excluded. Category profitability may erode and if product quality is perceived as being lower and results in dissatisfaction it may have a negative impact on overall shopper trust in the retail brand. A few interesting initiatives were observed at EU retailers to discourage the drain-away of shoppers to discounters.