““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 manufacturers to believe that advertising will protect their brands, but if retailers can match a brand on product quality there is usually no stopping them. This is because a well-tended retail master brand provides a sufficient level of trust for the consumer to at least try the product if prominently presented and well priced in-store.””
