Add a New Bulls Reason Concept: Private Label Trends Headline: (100 character max) Analysis: Cancel 0% agree 0 votes edit Cheaper private label prices appeal to consumers during recession Top Contributor: Shawn Woodhull | Last edited on 03/20/09 | Edit | History Private label merchandise is usually lower priced than comparable brand name goods, which could appeal to consumers who are trying to cut down on their spending during the recession. Consequently, private labels have an opportunity to increase their share of the sales mix by stealing sales from more expensive brand name products. (100 character max) Cancel 0% agree 0 votes edit Common household products draw customers in Top Contributor: Eric Hafner | Last edited on 11/23/08 | Edit | History Most private labels cover the basics like salt, flour, and ketchup etc. which most consumers couldn't care less about the brand of these items, only price matters. Companies that can maintain high quality with the essentials are granted leeway for items like cookies, chips and box mixes that most people would assume go for the brand name but will go brandless if the price is right and if the companies keep quality comparable. (100 character max) Cancel 0% agree 0 votes edit Key financial driver Top Contributor: H V | Last edited on 06/13/08 | Edit | History Key financial driver - Gross margins are much more attractive than branded products. In addition, private label is often times perceived as a good way of creating brand loyalty (think of Costco's Kirkland Signature or Trader Joe's products) (100 character max) Cancel

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