Abstract

This paper reviewed the existing literature in different parts of the continents, focusing specificallyin Africa and Europe, critically reviewing past and recent literature of studies on customers’ perceptionstowards private label brands. Such review article enabled the writer to understand the prevailing state ofprivate label brands across different continents; in the process enabling grocery retailers, marketingpractitioners and academics a clear view of the state of customers’ perceptions around the globe. The resultsfound that the international state of private label brands has somehow improved in some parts of the globe,especially in Europe and Americas, where private label brands have enormously improved customersperceptions of their private label brands and in the process actively competing with national brands for themarket share. Opposing such success, In Africa there seems to be somehow lack of improvement in the earlyperceptions of private label brands in the process not fully challenging national brands. Noticeably, in Africathere seems customers still perceive private label brands as alternatives of national brands in tougheconomic conditions. Hence, grocery retailers need to extensively invest on their private label brands in orderto competitively challenge and change existing customer perceptions. Key investments should be in branding,promoting and educating customers about private label brands.

Highlights

  • Private label brands are defined as grocery retail owned or store brands, that are manufactured and sold under a specific grocery retailer which owns that particular private label brand (Kumar & Steenkamp, 2007) as cited by (Beneke, Flynn, Greig & Mukaiwa, 2013)

  • Global Nielsen Report (2014) holds that grocery retailers in Africa find it hard to obtain equipped suppliers that can contest the quality of manufactured brands packaged consumer goods, which is one of the challenge faced by grocery retailers, amongst other challenges

  • The aim of this study was to understand the perceptions of customers regarding private label brands and their growth across two regions, Africa and Europe

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Summary

Introduction

Private label brands are defined as grocery retail owned or store brands, that are manufactured and sold under a specific grocery retailer which owns that particular private label brand (Kumar & Steenkamp, 2007) as cited by (Beneke, Flynn, Greig & Mukaiwa, 2013). Most growth has been realized in the grocery retailers’ private labels consumer goods. This is supported by the 90 % presence of private label brands in the packaged consumer goods categories (Cuneo et al, 2015). This sharp prominence of private label brands has been realized across various countries. Global Nielsen Report (2014) holds that grocery retailers in Africa find it hard to obtain equipped suppliers that can contest the quality of manufactured brands packaged consumer goods, which is one of the challenge faced by grocery retailers, amongst other challenges

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