Leading national brands facing store brands competition: Is price competitiveness the only thing that matters?

Daniele Fornari, Edoardo Fornari, Sebastiano Grandi and Mario Menegatti

Journal of Retailing and Consumer Services, 2016, vol. 30, issue C, 234-241

Abstract: Store Brands (SBs) have experienced a strong increase in both value and unit sales internationally during the last decades; thus their market share has been constantly growing. Starting from these considerations, the present work aims at deepening the topic of inter-brand competition within the FMCG market and, in particular, the market share trade-off between Leading National Brands (LNBs) and Store Brands. Our empirical analysis is based on panel data about 322 product categories sold within the Modern Grocery Distribution stores in the 2010–2013 period. Results obtained show: (i) the existence of a relationship between the increase in the LNB-SB price gap and the switching of market share from the former towards the latter; (ii) the consolidation of a change in consumers' purchasing preference in favor of SBs; (iii) the existence of an inverse relationship between the inter-brand competition intensity and the retail branding life cycle evolutionary stage, which is different for each product category.

Keywords: Inter-brand competition; Market share switching; LNBs–SBs; Price/non-price competitiveness; Retail branding life cycle (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:30:y:2016:i:c:p:234-241

DOI: 10.1016/j.jretconser.2016.02.001

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