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Prepared by Date. Kurt Petersen Business Development Mgr August 22 nd 2007. PLMA Seminar what’s hot in private label? insight into emerging trends...HANDOUT. 2004 - significant shift for Private Label as Australian retailers announce new strategies.
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Prepared by Date Kurt Petersen Business Development Mgr August 22nd 2007 PLMA Seminarwhat’s hot in private label?insight into emerging trends...HANDOUT
2004 - significant shift for Private Label as Australian retailers announce new strategies • Consumer perception of private label has been - low cost - low quality.. “I think there's been a cynicism in the market ... that generic products have often been synonymous with poor quality." Roger Corbett – SMH Aug 26 2004 • In 2004 refreshed focus on the role of Private Label – major retailers Coles and Woolworths announcing new strategies to the market.
data source • AZTEC Grocery Review • Defined Grocery = - 220 Categories Aust (July 2007) - 180 Categories NZ (Apr 2007) • Data Omissions: • Fresh Produce (Aust / NZ) • Bread (Aust Only) • Cigarettes (Aust / NZ) • Aldi scan • AZTEC Customer Insights • National In Home Panel (stratified panel n=2000 – QRT July 2007)
size & growth of private label $320M per month $4 Billion per year Data Source – AZTEC grocery review
size & growth of private label ($4B Aust) Private Label growth outperforming Total Defined Grocery in Australia for value Data Source – AZTEC grocery review
is private label growth a national trend...? +7.6% (8.2%) ( %) Value growth year ago (7.8%) (6.7%) (6.6%) (7.1%) (12.2%) Data Source – AZTEC grocery review
the war on branded products Data Source – AZTEC grocery review
key departments contributing to private label growth Data Source – AZTEC grocery review
private label share in Australia by retailer Data Source – AZTEC In Home Panel
size of private label ($4B Aust - $.... NZ) $75M per month $950M per year Data Source – AZTEC grocery review
size of private label ($4B Aust - $950M NZ) NZ showing strong value and unit p/l growth Data Source – AZTEC grocery review
key departments contributing to private label growth Data Source – AZTEC grocery review
who shops private label? • 99.8% of households now purchase Private Label What life stage spends the most? Young families What is the age of the main shopper? 35- 44 What is thefrequencyof shops? What is there claimed weekly Household spend on consumer goods? Fortnightly + What is their occupation? Blue Collar and Unemployed $251+ Data Source – AZTEC In Home Panel
(+1) (+1) (-2) (-1) (-1) is the private label range increasing? Australia (private label active sku -5% year ago) Data Source – AZTEC grocery review
is the private label range increasing? New Zealand (private label active sku +8% year ago) (+3) (+2) (+2) (+1) (+1) (+1) (+2) (+1) Data Source – AZTEC grocery review
what categories are driving private label? AUSTRALIA Traditional Necessities Eggs, Nuts, Oils, Water Dairy: Milk & Cheese Non Emotional Purchases Cat Litter & bird food Picnic items & office paper Plastic Bags &Scourers Data Source – AZTEC grocery review
price by department in Australia 71% 53% +57% +54% 71% 85% 75% +80% +84% index +10% +8% +7% +11% +5% +7% +6% +3% +6% +7% Data Source – AZTEC grocery review
price by department New Zealand index 78% 86% 64% 62% 86% 57% 98% 94% 91% 39% 82% 59% 84% 88% 37% 49% +4% 0% +2% +1% -5% +3% 0% +5% -4% +4% -2% +7% +2% +0% +5% +8% -2% Data Source – AZTEC grocery review