Do private labels have enough brand equity to launch and sustain successful innovation?
The answering is yes, accordingly to a recent study performed by IE Business School that analyzed all new product launches in last two years in several consumer packaged good categories. The reasons behind this result are related to the increased consumer familiarity and experience with private labels, along with a positive consumer perception of the price utility now provided by private labels even in new products. The difference of “product news” vs “product innovation” The findings have led to some interesting interpretations and implications. The innovation strategy to fight store brands seems to be inefficient at least in the categories where store brands are already dominant, ie have high degree of consumer familiarity and trust. In fact despite increasing innovation in the market place few national brands are gaining share. This has led us to think that the current strategy of innovation and launching of new products in consumer packaged good markets needs to be reconsidered by
