Customer Quote by Greg Thain
““This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technologically sophisticated, like detergents and coffee, there are few top-quality suppliers willing to entertain private label, hence manufacturer brands are in the driver’s seat. For example, Procter & Gamble, Unilever, Henkel and Colgate hold all but the cheapest segment of the washing-powder market, and Nestlé, Kraft and Unilever hold onto the instant-coffee market. Their technological leads, backed by communication focused on the functional and taste superiority, has kept private label share below average in most countries. It is tempting for””
About This Quote
Source Article: Retail Innovation Review, 2023
Private label brands lag because manufacturers control technology and brand power.
In simple terms: Manufacturers dominate high‑tech product categories.
Key Takeaway
Leverage unique value to compete with manufacturers.
Themes
competition
brand power
innovation
Mood
critical
strategic
Type
analysis
business
When to use this quote
- product development
- branding strategy
- market entry
Key Concepts
supply chain
private label
technology
Questions to Reflect On
- How can private labels differentiate on quality?
- What partnerships could level the playing field?
A Different Perspective
Consumer loyalty may shift despite manufacturer dominance.
