A majority of Western European countries are grappling with unstable economic conditions. In fact, according to the European Commission, several large European countries, including the UK, Germany, Spain, Italy and France have seen their economies contract at rates well-above anything seen since the post- World War II era. Recessionary conditions are expected to persist well into 2011.
Like shoppers in the United States, European consumers have tightened their belts. Consumers are shopping across channels, redeeming coupons, adhering to pre-made shopping lists, and delaying or eliminating “non-essential” purchases. While tactics vary, the goal is the same: consumers want to save money on FMCG purchases.
At the crux of many savings strategies is private label packaged goods. Private label is generally well-entrenched in the European marketplace. But, for several reasons, development varies at the country, market, retailer and category level.
With the recession expected to continue for more than a year, consumer deal-seeking behavior is at a high. Many retailers are exercising their private label muscle in attempt to capitalize on recession-driven opportunity to build market share and shopper loyalty. For national brands, it is time to step up competitive efforts.
This report explores current and emerging private label trends in the United States and Europe, as well as influencing factors that are reshaping the CPG industry. Manufacturers and retailers with a clear understanding of these forces will be able to develop and execute competitive strategies for their brands which meet corporate goals while simultaneously delivering against consumer needs.
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