Product details

By early 2005, a major part of retail sales in Europe came from the private labels. Private labels in Europe had begun to emerge as alternatives to the brand name products. Brands created by Wal-Mart, Target and others, began to eat into the market share of the brand name businesses. This worried the brand name businesses like Procter & Gamble and Unilever, especially in the FMCG (fast moving consumer goods) sector. High concentration, bargaining power of retailers and consolidations in the industry had contributed to the growth of private labels in Europe. By the end of the 20th century, private labels entered product lines like beauty and cosmetics, which had been dominated by big brand names till recent times. Private labels have become a lucrative business opportunity in Europe, while big brands were struggling to cope with the new competition. The case details the growth of private labels in Europe and the factors that contributed to their growth. The case throws light on the comparative advantage of private labels over brands, for retailers as well as customers. The case helps analyse the possible strategies of established brands in the marketplace, increasingly being dominated by private labels.