National Brands vs. Private Label vs. Private Brands

03/02/2010 by Erinn Gormley (0 comments)

“Private-label packaging- a ‘flight to value’” –Packaging World Magazine

We’ve written quite a bit about the growing competition of private label products. So what’s the big deal? For so many years established national brands stood untouched across various markets until retailers realized the opportunity to undercut their prices with comparable products. At first they were perceived as the lower-cost, lower-quality option, but as consumers switched their loyalty, retailers invested more in their own brands. Besides the obvious ability to choose preferential retail space within the store, they also developed their packaging and marketing strategy. This was the shift from the copycat “private label” to an altogether new “private brand”. The recognized threat to national brands is evident in their subsequent rebranding efforts. Rather than picking up the identical Tide bottle that your grandmother purchased for years, you can pick up a different Pepsi can every month.

 

Via Roma products

A great example of a successful private brand is Via Roma from NJ-based supermarket chain A&P. We featured the packaging design when it first created a lot of buzz back in July. The design for the product line is a far cry from the private labels I remember in the 1990’s (not to mention the stigma of mom sending you to school with your classroom party contribution of generic soda). In this article from Packaging World, A&P’s vice president, Doug Palmer discusses the growing market for private labels, and why it won’t be slowing down any time soon.

 

Articles we’ve recently written about private labeling:

 

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