MiscellanyISSUE 5 (MAY 2016)

The role of Private Labels in retailers’ assortment: an analysis in the FMCG sector

Abstract

Private label (PL) has become a «social and economic phenomenon», especially in the context of Fast Moving Consumer Goods (FMCG) sector. Although global economic crisis has boosted PLs’ success, retailers have developed high-value own brands. As a consequence PL positioning is very close to that of (traditional) national brands competing in the sector. Because of such positioning, many retailers have emphasized their own brands in their shelves. PL has become the most important competitive tool the retailers employ against national brands. This paper analyses the role of PLs in retailers’ assortment and whether many retailers’ assortment decisions might be detrimental to the retailers’ interests.

retailing;  assortment;  private label;  national brands; 
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