The Interplay Between Manufacturer Brands and Private Labels: Radical Innovation in Consumer Packaged Goods in Spain

Belén Derqui () and Nicoletta Occhiocupo ()
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Belén Derqui: Universitat Ramon Llull
Nicoletta Occhiocupo: Universitat Ramon Llull

A chapter in Advances in National Brand and Private Label Marketing, 2019, pp 19-26 from Springer

Abstract: Abstract As manufacturers face a decreasing channel power, radical innovation in Consumer Packaged Goods represents for them both a risky activity and a necessity. At the same time, retailers keep investing in developing Private Label products. This paper aims to understand the role played by manufacturers and retailers in radical innovations in the CPG industry. Two datasets by Kantar Worldpanel are analysed, including all radical innovations launched in Spain between 2012 and 2016 across the 31 most innovative categories. Results indicate that Manufacturer Brands play a leading role in radical innovation, despite the difficulties they face in achieving distribution and the challenge of Private Label “me-toos”. Furthermore, in most categories with a high number of innovations the growth of PL market share slows down. The paper suggests that manufacturers need to keep innovating in order to hinder the development of private labels and to preserve their position in the channel.

Keywords: Radical innovation; Consumer Packaged Goods; Private Label; New products (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-18911-2_3

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DOI: 10.1007/978-3-030-18911-2_3

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