As retailers of both electrical and home improvement products suffer from consumers cutting spend on big ticket items and a declining housing market, increasing the proportion of private label lines has taken greater precedence. Retailers are increasingly investing in developing value own brand goods and in improving their private label proposition to lure in and retain price conscious shoppers.
Features and benefits
Maximise your profit margins by identifying the most suitable categories and pricing strategies for your private label lines.
Achieve the best results from your own brand ranges using our best practice recommendations surrounding issues such as product lines and branding.
Benchmark the performance of your private label lines against your competition by identifying the the most successful private label innovations.
The share of own brand sales at German DIY retailer Praktiker currently stands at 27% and the company envisions this proportion to rise to 40% in the medium term. The retailer is focusing especially strongly on developing its mid priced Praktiker range. The share of private label at its premium fascia Max Bahr is also anticipated to rise to 50%.
The world's top home improvement retailers The Home Depot and Lowe's share some common suppliers, including United Industries, which produces lawn care goods for both retailers under the respective brands of Vigoro and Sta-Green. Other suppliers, such as Behr, have chosen to sell its products exclusively at The Home Depot.
Entry level private label products are increasingly making gains in both sectors with electricals retailer DSGi recently launching its Essentials range, Kingfisher's B&Q re-emphasising its Value range and Homebase launching its own Value range. This development has served to heighten the retailers' value credentials.
Your key questions answered
What are the key issues that I need to consider when developing a new private label line?
What strategies are my competitors adopting for their own brand ranges?
What advantages do retailers have in developing new product lines over manufacturers?
What types of innovative products can I develop in response to changing consumer trends?
How do I brand my private label ranges and how much prominence do I give them instore?