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For years, Private Label development in Australia has lagged behind most other developed countries. However, this is starting to change with share reaching 18 percent of packaged grocery (excluding tobacco products), as Aldi, which generates almost all of its sales via Private Label, continues to grow its footprint in the Australian grocery market.
In response, the other major retail players have signalled a greater emphasis on Private Label products, launching several new brands and adopting a more premium positioning for them.
Manufacturer and retailer challenges
As Private Label gains share, it will affect the growth prospects of the national grocery brands. Australian manufacturers will be forced to make an important strategic decision: fight Private Label or make it part of their manufacturing portfolio.
How will this decision affect your brand’s marketing mix; accelerate innovation and new product development; step up promotional spend; grow alternative distribution channels; extend your brands into related categories?
Retailers face an equally challenging decision: can Private Label help fend off discount banners like Aldi, or is there a risk that consumers will trade down from premium brands – which may reduce consumer spend?
How big is Private Label?
In the face of critical issues posed by Private Label performance, ACNielsen is equipped to assist manufacturers in making the right decisions.
Before you decide whether – and how – to respond, you need to quantify the size of the Private Label segment in your market.
The ACNielsen Private Label Report provides in-depth information on the following areas:
- How is Private Label performing in terms of share and growth by quarter across total packaged grocery for the entire grocery channel and by retailer?
- Where is Private Label making the most progress, and has this progress resulted in cannibalisation of branded products within the same accounts, or is it stealing sales from other retailers?
- How is Aldi performing in the Australian market, and how has it impacted the other major retailers?
- In which categories is Private Label most developed, and where is it growing the fastest? Is there a common thread to its progress in these categories?
- Is consumer acceptance of Private Label growing? How much are consumers spending and how frequently are they purchasing Private Label?
- Which demographic groups are showing an increased appetite for Private Label? Do they belong to your brand’s core constituency?
Report content
The comprehensive syndicated Private Label Report is sourced from the
ACNielsen | Homescan consumer panel. The report is updated quarterly, and is supplemented by expert commentary and analysis.
How is Private Label affecting your business and brands? How should you respond?
The ACNielsen Analytic Consulting team can provide insight into the effect of Private Label on your business and can recommend how you should respond. The team assesses which of your brands are most exposed, and whether you should reduce shelf-price, spend more on promotions and advertising, or focus on new product development (NPD). The team also looks at which direction your NPD should take, the potential size of the generic buyer base and whether you should consider Private Label manufacturing.
For more information regarding how you can subscribe to the quarterly updated ACNielsen Private Label Report, please contact your ACNielsen Account Manager or click here to download the product information flyer.
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