Publication Type
Journal Article
Version
publishedVersion
Publication Date
3-2023
Abstract
Private-label (PL) shares are characterized by considerable heterogeneity across both countries and categories, not only in their current level, but also in the rate at which they are growing. This creates ambiguity about their remaining growth potential. To offer insights into the likely long-run PL shares, we take a forward-looking perspective by means of a convergence model. We apply the model to two unique datasets that together span more than 50 countries, both emerging and developed, across more than70 CPG categories. We find evidence of partial PL convergence: even though PL shares will become more similar, part of the currently observed heterogeneity will persist. The future evolution in two key marketing instruments, new-product introductions by both NB manufacturers and retailers and the NB-PL price gap, is found to play a substantial role in shaping the global PL landscape of the future. This impact is not uniform, however, but depends on the category, and varies with the retail, economic and cultural context. In addition, the long-run impact of both marketing drivers differs from what is currently observed, suggesting that managers should not adhere too strongly to earlier practices when planning for the future.
Keywords
Private labels, International marketing, Adaptive foresight
Discipline
Marketing
Research Areas
Marketing
Publication
International Journal of Research in Marketing
Volume
40
Issue
1
First Page
248
Last Page
267
ISSN
0167-8116
Identifier
10.1016/j.ijresmar.2022.07.006
Publisher
Elsevier
Citation
GIELENS, Katrijn; DEKIMPE, Marnik G.; MUKHERJEE, Anirban; and TULI, Kapil R..
The future of private label markets: A global convergence approach. (2023). International Journal of Research in Marketing. 40, (1), 248-267.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7152
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.ijresmar.2022.07.006