Private label grows in Europe

Private Label Growth predicted in Europe dispite the global slow down but experts warn that for long term planners that quality has to be addressed.

It is not hard to see why the Private Label sector would grow during an economic down turn, as people every where from all class's start to feel the pinch those no-branded products on the shelves now seam to be more an more attractive due to the lower prices of there branded counter parts, So where does this growth go. In the short term more an more supermarkets, buying agents and buying services companies are truning to the private label to help increase sales whilst maintaining margins. Creating a Private label is quick and cost effective to put to the market with lots of European manufacturers gearing up to provide such services.

Initially the traditional manufacturers saw private labeling as a trend a phase one that did not command a large enough market share to justify opening new department and shaking things up a little to focus on getting a private label soloution out to the people who were at the time exploring this new outlet. This has now changed. Even though the private labels market share is still small it is increasing. In Eastern Europe for example there are been reports of over 23% increase in the cosmetic private label markets.

Many experts warn however simply jumping on the private label band wagon, whilst in the short term can be effective, can not be sustained without addressing the issue of quality. In effect turning out cheap low quality Private label products in the short term and especially in a global slow down will work as customers look to stretch there household budgets, however an increasing number of people are still expecting high quality and when the