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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…” quote by Greg Thain
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““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.””

Greg Thain

About This Quote

Source Article: Retail Brand Strategy, 2023

Private label brands struggle against established manufacturers due to quality and trust gaps.

In simple terms: Store brands often lag behind big manufacturers.

Key Takeaway

Focus on quality and trust to compete.

Themes

business branding competition

Mood

analytical pragmatic

Type

expository business

When to use this quote

  • retail negotiations
  • product development
  • marketing strategy

Key Concepts

market dynamics consumer trust private label

Questions to Reflect On

  • Can private labels ever match premium quality?
  • What builds consumer trust quickly?
A Different Perspective

Brand loyalty can be hard to shift.

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