Poll: How are private labels impacting your business?

Many retailers offer private-label products as an effective way to satisfy an unmet need in the market, or achieve higher profit margins. But some retailers, including Amazon and supermarkets like Coles and Woolworths, have found that offering too many private-label products can alienate the third-party brands they stock, since it puts them in direct competition with the very outlet they are selling through.

According to Salesforce’s Consumer Goods and the battle for B2B and B2C relationships study, 49 per cent of consumer goods leaders said retailers’ private-label products “threaten their business” – potentially putting a substantial strain on retailer-brand relations.

Despite this, some retailers have made it plain that they will continue to invest in private-label products.

Supermarket Coles has previously stated that it aims to have 40 per cent of its range made up of private-label products, including its new Wellness Road range which debuted last week. The latter is positioned as a way for Coles to lower the cost of living for Australians, while giving them better quality food at lower prices.

We put the question to retailers that stock private-label products: How has the creation of private label products impacted your business?

[yop_poll id=28]


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