Where Private Label is strong or cheap, changes in its relative price strongly related to share
This week a deep dive into selected categories and countries
A focus on categories with high Private Label shares (>60% in 2021)
Where Private Label is already strong, the effect is larger than for the average category (see last week): in these categories, a 10% increase in the relative Private Label price is associated with ~1.4 share points lower Private Label share (R² = 0.28).
A focus on categories with low Private Label prices (>50% cheaper than brands in 2021)
Where Private Label is priced well below brands, a 10% increase in the relative Private Label price is associated with ~1.2 share points lower Private Label share, but the pattern is looser (R² = 0.18).
A focus on the Netherlands
The direction holds in most countries. In the Netherlands, a country with rather high Private Label sales, a 10% increase in the relative Private Label price is associated with ~1.3 share points lower Private Label share (R² = 0.28).
