Given the increase in consumer prices, the population seeks to purchase low-cost products, as well as own brand products from stores, so retailers are preparing to manufacture and offer more and more own brand products, according to Alonso Yañez, Vice President and Leader of the Consumer and Retail sector of the consulting firm Capgemini.
“All retailers, not just the big ones, plan to generate their own products and brands, the manager said this Wednesday at a press conference.
In addition to inflation, economic crises are the factor driving this trend, he explained.
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Additionally, consumers today are more informed, and with technology, they have access to more information, comparisons, and can reach the lowest prices.
According to Capgemini measurements, in 2023, 63% of consumers were those looking for own or low-cost brands, while in 2024 the figure rose to 65%, which generates greater pressure on stores.
At the industry level, if retailers prepare to produce and sell more private label products, manufacturers will face greater competition.
“(With the tendency of retailers to sell their own brands) Manufacturers of consumer products already have more competition, not only other manufacturers, but also supermarket chains with their own brands,” he said.
He added that the pressure on manufacturers intensifies because those who want to make their own brand can even review manufacturing alternatives in other countries.
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