THE
NON FOOD PRIVATE LABEL WORLD
What
is a Private Label product?
NFPL
means Non Food Private Label.
A
Private Label is a brand owned by a retailer who gives his
name or label to the product
manufactured by a supplier. For example: Carrefour,
Metro, Castorama or Wal-Mart brands produced by
international manufacturers)
The
Private Label potential in Europe (source : Euromonitor)
The
Non food Private Label market represents a turnover in
Europe of more than US$ 250 Billion
and all surveys forecast a strong development
especially in non food.
Euromonitor
( British consultancy office specialised in Private Label
surveys) expects an increase of more than 50 % of the non
food Private Label turnover in Europe)
Nowadays,
the market share of the non food Private Label products
makes up around 12% of total retail turnover in Europe;
but some countries like Holland and Great Britain which
are more mature in Private Label products are showing
market shares exceeding 25%. This illustrates the enormous
potential to countries like France with a 12 % market
share or even Italy and Spain with market shares below 5%.
Why
such an interest by retailer for Private Labels?
Private
Labels help retailers to increase their profit with better
margins and to make customers loyal to their brands.
As
a consequence of giving their names to products, retailers
can no longer afford
poor quality concerning their Private labels.
We
face the 4th generation of Private
Label Products:
-
1st
generation: first price products, poor quality
(seventies)
-
2nd
generation: between first price and national brand
price, medium quality (eighties)
-
3rd
generation: prices lightly below International and
National brands with same quality (nineties)
-
4th
generation: no more me-too products; quality
innovative lines (2000)
Private
Labels: a real opportunity for manufacturers: why?
Launching
a new brand in a country is extremely expensive. In order
to impose a good awareness to new brands, one need to
reckon at least on US 20 cents by inhabitant. This represents for France
US$15 million and for whole Europe US$ 400 million. This
can only be done by large companies.
By
manufacturing Private Labels for retailers, you can avoid
paying such an amount of money because the retailers uses
their own brands which are already known.
If
you supply one major retailer like Wal-Mart, Carrefour,
Metro, Castorama or Kingfisher with their own brands, you
do not have to invest in marketing but only in production
for assuming big quantities, excellent quality and tailor
made products.
What
kind of products are concerned by Private Labels?
Products
concerned by Private Labels are retail products in the
following sectors :
-
DIY,
hardware and Garden products and furniture
-
Shoes
and clothing
-
Auto
parts and accessories
-
Leather
ware and fashion accessories
-
Electronics
and domestics
-
hygiene
and cosmetics
-
Household
furniture and equipment
-
Drugs
and health
-
Festivity
and seasonality products
-
Pets
accessories and aquatics
-
Table
and Kitchen ware
-
Stationery
-
Toys
and games
-
Packaging
-
Sport
and leisure
-
Mother
care accessories
NFPL:
an answer for both retailers and manufacturers wanting to
follow the market evolution :
The
NFPL & Cie (Non Food Private Label Company) has the
aim of helping both retailers and manufacturers in finding
each other and doing business in non food private label
products.
This
happens in several ways: The
NFPL 2001 exhibition, the
NFPL Association, the nfpl.net, and the
surveys.
The
NFPL 2001 Exhibition :
The
NFPL 2001 will be the second fair of the NFPL
& Cie and will happen next May 29th and 30th
2001 in Paris, France.
Manufacturers
from all over the world will physically show their
products to the European buyers coming from Hypermarkets,
Specialised stores and Mail Order companies. We already
reach 20 000 buyers of more than 850 retail companies in
France, Benelux, Germany, Great Britain, Italy, Spain,
Skandinavia, Austria, Portugal
and Switzerland.
The
NFPL Association :
The
NFPL Association counts already more than 3000 members
among whom 900 retailers and 2000 manufacturers.
The
association members receive regular information about the
market, the Exhibition, surveys etc…
Being
member of the NFPL Association give you advantages like
discount prices on all NFPL events.
The
retailers involvement in NFPL: the "NFPL Committee"
Retailers
are very interested in having a structure that can help
them to have more information about the Private Label
market but also that can organise exhibitions and business
contacts with potential suppliers throughout the world.
Retailers therefor have decided to join the "NFPL
Committee".
The
NFPL Committee is
made up of International Retailers interested in
Non Food Private Labels. They will
decide the strategy of the NFPL Exhibition and
stand for the
quality of the event and the quality of its visitors.
We
already have the support of Opera (US$ 30 Billion turnover
with Cora +
Casino), Auchan (US$ 30 Billion), Domaxel (US$ 2 Billion)
and Leroy Merlin (US$ 3 Billion)
for initiating the NFPL Committee. The Committee
will start in September 2000 with 20 European Retail
Representatives.
Other
NFPL services : the surveys
The
NFPL Committee and the NFPL & Cie will ask Euromonitor
to realise regular surveys about the evolution of the Non
Food Private Label Market. The
first report will be accessible end of September 2000 and
will present the Private Label forecasts for DIY and
Gardening products
in Great Britain, Germany and France .
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