Spain: Retailer brands skyrocket because of family economic hardship

Private label accounts for 39% of the market after its greatest advance in four years. The average price difference with big manufacturers reaches 30%.

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The economic downturns led many families to vary their consumption habits during the crisis, looking for cheaper products to balance their limited budgets. After the recession, the acquired habits seemed to relax. Now that prices are rising again and economic indicators are once again pointing out to austerity, families are tempted to go back to white label.

According to Kantar data, distribution brands gained 1.1 points of market share in the first nine months of the year, reaching almost 39% of the market in terms of sales volume. This is the biggest advance in the last four years.

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                                        The increase of private label in Spain

For many households, the retail brand, cheaper than the manufacture’s, it the only alternative to fill their shopping basket in the face of the new price increase, which is being experienced in Spain, together with signs of slowing its economy. According to AEA Business School, “the average difference in price between private label and manufacturer brand is around 30%”.

Also contributing to the apogee of the distribution brand is the fact that the chain, which dominates the market with 25.8% of market share, Mercadona, is firmly committed to its own brands. So do the two German companies which grew the most until September, Lidl and Aldi.

 With a limited market in its number of buyers by the stagnation of the population in Spain, what one gains, another loses. In the first nine months of 2019, according to Kantar, the main manufacture brands have fallen five tenths, to 32.8%.

 Source: La Razón