The private branding phenomenon: Improving the market share of private brands in emerging markets

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

The adoption by retail chains of private brands is big business in developed economies. Such products provide greater profit margins, more control over quality and supply, and improved leverage with existing suppliers. Western countries, particularly in Europe, have adopted private brands as a key aspect of boosting the performance of any type of retail chain. Yet in emerging markets, the use of private brands is significantly lower. Looking to understand why this is the case, and to provide research in an area that has tended in the past to only consider developed economies, Herstein et al. (2017) have looked into the food retail industry in Israel to understand why private brands are proving less successful. Because of the potential for private brands to boost the performance and profits of retail chains, as well as the economy of local areas and the nation as a whole, it is important to understand this disconnect between private brand success in developed and emerging markets.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Citation

(2017), "The private branding phenomenon: Improving the market share of private brands in emerging markets", Strategic Direction, Vol. 33 No. 10, pp. 10-13. https://doi.org/10.1108/SD-07-2017-0112