Private Label Junqi lin – 4383990

Abdallah Al Jafari – 2815692

Mohd shatnawi - 2290741

Growing very fastIn Australia

Great value, $1 out of $4 Increased private PL to 23% Woolworth has 3 categories: Homebrand,

Woolworth, Woolworth selectColes has 3 categories: Smart Buy, You’ll

Love Coles, Coles fine30% of supermarket sale in 2017

In UK

Largest PL GrowingThe first country to implement

PL50% of total saleIncreased the range of PLBig Competition, Improve Quality

Three Dimension

Cost: PL wheel: PL firms become vulnerable when increase the investment in marketing, financing, etc

Quality: quality improvement stimulates sales growth

Innovation: Sub-brand, health and wellness, green product

PL Strategies:Make PL name as store

name (Tesco).

Multiple range of independent PL for different categories in one store (Aldi).

PL Strategies:

Give all categories across the store as independent brand name (HomeBrand).

Impact of PL

Impact on Supermarket:Growing, big competition, high acceptance on Aus consumers

Impact on Online:Many firms adopt PL strategy

Impact on Retailers: Many benefitProfit marginDifferentiate from competitorsIncrease powerBuild customer loyalty

Impact on Suppliers:

Competition with retailers on shelvesReduce the priceSmall brands closedSome ranges deleted

Impact on manufacturers:

Opportunity for some manufacturersThreat for some manufacturers

Impact on consumers:Most beneficialFailing of price More ranges, more options Improve quality

Recommendation

Improve qualitydevelop right strategies