Private labeling trends in South Africa (SA) are largely compatible with what is happening in the rest of the world, according to an August 2005 study conducted by ACNielsen. The information was supplied by biz-community.com (Cape Town).
Nielsen studied 136 product categories grouped into 10 classes.
Private labeled products came of age in the 1980s when they were associated with lower priced, or inferior products. Since then, according to the study, private labeled products have attained a high degree of consumer acceptance. Nielsen used a narrow definition of private labels: Products that can be clearly identified as belonging to a particular chain.
In general terms, the use of private labels is higher in emerging markets than it is in established markets-which can be shown to be nearing saturation.
In the SA market, the percentage of product categories in which private labels can be found is similar to the global trend. Globally, 75 percent of product categories are represented by private labels, which accumulate an average market share of 15 percent.
In the SA market, 78 percent of the product categories studied by Nielsen included private labels. The average market share, though, was 10 percent.
Of course, there are exceptions. Among SA products, canned tuna private labels and scouring cleansers both have a 50 percent market share.
Other categories with significant private label market...