--- title: "Meaning & Key Takeaway of: Owing to the ever-increasing pressure on…" description: "\"“Owing to the ever-increasing pressure on space, as retailers continue to extend private label ranges, there is a risk of branded products being moved ..." image: "https://sms4smile.com/quotes/i/b18/greg-thain-1820_marketing_owing-to-the-ever-increasing-pressure-on_1181160.jpg" --- # Owing to the ever-increasing pressure on space, as… ![“Owing to the ever-increasing pressure on space, as retailers continue to extend private label ranges, there is a risk of branded products being moved to less-optimal locations, having fewer promotional slots and facings or being delisted. Manufacturers cannot wait for this to happen before…” quote by Greg Thain](https://sms4smile.com/quotes/i/b18/greg-thain-1820_marketing_owing-to-the-ever-increasing-pressure-on_1181160.jpg) [Download](https://sms4smile.com/quotes/i/b18/greg-thain-1820_marketing_owing-to-the-ever-increasing-pressure-on_1181160.jpg) [Open image](https://sms4smile.com/quotes/i/b18/greg-thain-1820_marketing_owing-to-the-ever-increasing-pressure-on_1181160.jpg) > ““Owing to the ever-increasing pressure on space, as retailers continue to extend private label ranges, there is a risk of branded products being moved to less-optimal locations, having fewer promotional slots and facings or being delisted. Manufacturers cannot wait for this to happen before reacting; they must be proactive in making the case for their brands. While the absolute cash and margins on private labels may be higher for the retailer, the manufacturer has to shift the focus to total system profitability. Many factors favour manufacturer brands when total profitability is considered, including: Sales velocity: Shelfspace turnover is often higher for manufacturer brands. The velocity of leading manufacturer brands is often 10% higher. Profit per linear inch of shelfspace. Discounts and off-invoice allowances: Includes slotting allowances, listing fees, promotional deals, advertising and merchandising allowances, and credit for return of unsold merchandise. Promotional and advertising fees. Provision of ‘free’ logistics services: Includes transportation, warehouse and store labour, and merchandising help for the retailer. Manufacturer brands usually retail at higher-than-average prices: Even when the net margin on manufacturer brands is lower, the absolute cash profit per unit may be higher.”” [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Manufacturers must proactively defend brand placement and profitability despite retailer pressure to expand private labels. **In simple terms:** Brands need to act now to keep shelf space and profit. Key Takeaway Focus on total system profitability. Themes brand strategy retail dynamics profitability competition logistics Mood strategic analytical Type business marketing When to use this quote - retail negotiations - category planning - pricing reviews - marketing presentations Key Concepts sales velocity margin analysis logistics cost pricing strategy promotional economics Questions to Reflect On - How can manufacturers quantify their total system profit contribution? - What tactics can balance brand visibility with retailer cost goals? A Different Perspective Retailers may prioritize private label margins over brand diversity. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Higher Profit](https://sms4smile.com/quotes/about/higher-profit-3185044/) [Manufacturer Brands](https://sms4smile.com/quotes/about/manufacturer-brands-2199214/) [Margin Manufacturer](https://sms4smile.com/quotes/about/margin-manufacturer-3464838/) [Marketing](https://sms4smile.com/quotes/about/marketing/) [Private Label](https://sms4smile.com/quotes/about/private-label-903804/) [Shelfspace Turnover](https://sms4smile.com/quotes/about/shelfspace-turnover-3464839/) ## Related quotes > [“This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technologically…](https://sms4smile.com/quotes/greg-thain/this-is-because-the-quality-and-innovation-of-retailer-brands-is/) [Greg Thain](https://sms4smile.com/quotes/author/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…](https://sms4smile.com/quotes/greg-thain/this-is-because-the-quality-and-innovation-of-retailer-brands-is-2/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“As retailers have become competitors of manufacturers in many product categories, they reserve more shelfspace for their private label brands and dominate advertising spending…](https://sms4smile.com/quotes/greg-thain/as-retailers-have-become-competitors-of-manufacturers-in-many-product/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“PRIVATE LABEL IS booming. In Europe and the United States during the period 2000–2010, private label was responsible for the majority of the growth…](https://sms4smile.com/quotes/greg-thain/private-label-is-booming-in-europe-and-the-united-states-during-the/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“No brand is totally safe from private labels. Manufacturer brands can only survive by being unique, well branded and backed with real, fast innovations.”](https://sms4smile.com/quotes/greg-thain/no-brand-is-totally-safe-from-private-labels-manufacturer-brands-can/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“No matter how large and enlightened retailers become, they remain generalists, and there are things that are difficult for them to do as well…](https://sms4smile.com/quotes/greg-thain/no-matter-how-large-and-enlightened-retailers-become-they-remain/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [There is a huge body of business evidence now showing that energy savings give better service at lower cost with higher profit. We have…](https://sms4smile.com/quotes/william-j-clinton/there-is-a-huge-body-of-business-evidence-now-showing-that-energy/) [William J. Clinton](https://sms4smile.com/quotes/author/william-j-clinton/) > [“Of the Top Most Valued Brands in 2011, Coca-Cola and Marlboro were 6th and 8th, with their brands valued at $73.8 billion and $67.5…](https://sms4smile.com/quotes/greg-thain/of-the-top-most-valued-brands-in-2011-coca-cola-and-marlboro-were-6th/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Cullen’s model of selling top brands at cost then morphed into their being sold as loss-leaders, owing to the inexorable need to attract shoppers…](https://sms4smile.com/quotes/greg-thain/cullen-s-model-of-selling-top-brands-at-cost-then-morphed-into-their/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Although private label shoppers benefit from not having to pay for flashy advertising, private labels miss out on a key brand role: being vehicles…](https://sms4smile.com/quotes/greg-thain/although-private-label-shoppers-benefit-from-not-having-to-pay-for/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and that is innovation. Yogurt, seemingly an ideal…](https://sms4smile.com/quotes/greg-thain/manufacturers-have-one-advantage-that-can-never-be-overcome-if-used/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“The premium private label strategy is only possible when manufacturers have allowed a quality–value gap to open. This happens when manufacturers’ either price their…](https://sms4smile.com/quotes/greg-thain/the-premium-private-label-strategy-is-only-possible-when/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“retailers are developing their own brand equities via impressive private label strategies (see Chapter 9) and will begin seeing brand premiums being factored into…](https://sms4smile.com/quotes/greg-thain/retailers-are-developing-their-own-brand-equities-via-impressive/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“P&G, Mars, Kellogg’s, Gillette and Coca-Cola all refuse private label contracts, while, on the other hand, Unilever, PepsiCo, Nestlé, Heinz, Playtex, Ralston Purina, Hershey,…](https://sms4smile.com/quotes/greg-thain/p-g-mars-kellogg-s-gillette-and-coca-cola-all-refuse-private-label/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Marketing aims/image: A retailer that has positioning aims (e.g. trying to improve its image with respect to healthy food or trying to upstage wholesaler…](https://sms4smile.com/quotes/greg-thain/marketing-aims-image-a-retailer-that-has-positioning-aims-e-g-trying/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) ## More by Greg Thain > [“Marketing aims/image: A retailer that has positioning aims (e.g. trying to improve its image with respect to healthy food or trying to upstage wholesaler…](https://sms4smile.com/quotes/greg-thain/marketing-aims-image-a-retailer-that-has-positioning-aims-e-g-trying/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Every dominant brand (such as those listed in Table 5.1) has had to reinvest in mindspace every year to keep its position. However, things…](https://sms4smile.com/quotes/greg-thain/every-dominant-brand-such-as-those-listed-in-table-5-1-has-had-to/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“consolidation, coupled with a desire among the survivors to restore normal profit levels, helps to usher in an era of orderly competition based on…](https://sms4smile.com/quotes/greg-thain/consolidation-coupled-with-a-desire-among-the-survivors-to-restore/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“If the manufacturer can convince the retailer that delisting will hurt consumer satisfaction and possibly lead to store switching, then that will be second…](https://sms4smile.com/quotes/greg-thain/if-the-manufacturer-can-convince-the-retailer-that-delisting-will/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“As retailers have become competitors of manufacturers in many product categories, they reserve more shelfspace for their private label brands and dominate advertising spending…](https://sms4smile.com/quotes/greg-thain/as-retailers-have-become-competitors-of-manufacturers-in-many-product/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“High fixed costs mean that high volumes are an ever-essential objective. One”](https://sms4smile.com/quotes/greg-thain/high-fixed-costs-mean-that-high-volumes-are-an-ever-essential/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Importance of price: Price is imperative for FMCG retailers, much more so than for manufacturers. Retailers must constantly keep their real prices competitive and put…](https://sms4smile.com/quotes/greg-thain/importance-of-price-price-is-imperative-for-fmcg-retailers-much-more/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Hoping to create a little prestige, some retailers develop and advertise premium clothes sub-brands. In 2006, Myer, one of Australia’s largest retailers, launched a…](https://sms4smile.com/quotes/greg-thain/hoping-to-create-a-little-prestige-some-retailers-develop-and/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“The shift of power to retailers is not an inevitable phenomenon: technological changes and associated innovative ideas have been instrumental in moving power and…](https://sms4smile.com/quotes/greg-thain/the-shift-of-power-to-retailers-is-not-an-inevitable-phenomenon/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Because retail brands are barely differentiated, they are relatively fragile when compared to the largest manufacturer brands, despite having, in general, much higher awareness…](https://sms4smile.com/quotes/greg-thain/because-retail-brands-are-barely-differentiated-they-are-relatively/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“There are some FMCG categories where retailers are destined to control mindspace. These are the low-technology, low-image, low-novelty areas. Retailers are likely to be…](https://sms4smile.com/quotes/greg-thain/there-are-some-fmcg-categories-where-retailers-are-destined-to/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“In markets where consumers are sensitive to quality differences (e.g. washing powder, instant coffee, sanitary protection) the share for generics and copycats usually plateaus…](https://sms4smile.com/quotes/greg-thain/in-markets-where-consumers-are-sensitive-to-quality-differences-e-g/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Direct consumer contact is an advantage for retailers, as 70% of shoppers make purchase decisions in stores and are thus open to last-minute persuasion. The”](https://sms4smile.com/quotes/greg-thain/direct-consumer-contact-is-an-advantage-for-retailers-as-70-of/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Fresh produce and other ‘destination’ products can create a sustainable differential advantage, as they have the potential for deciding the destination of the shopper.…](https://sms4smile.com/quotes/greg-thain/fresh-produce-and-other-destination-products-can-create-a-sustainable/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“PRIVATE LABEL IS booming. In Europe and the United States during the period 2000–2010, private label was responsible for the majority of the growth…](https://sms4smile.com/quotes/greg-thain/private-label-is-booming-in-europe-and-the-united-states-during-the/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) [Explore all 206 Greg Thain quotes ](https://sms4smile.com/quotes/author/greg-thain/) ## More Customer quotes > [“Start a business, not a startup”](https://sms4smile.com/quotes/anonymous/start-a-business-not-a-startup/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. 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Manufacturers cannot wait for this to happen before reacting; they must be proactive in making the case for their brands. While the absolute cash and margins on private labels may be higher for the retailer, the manufacturer has to shift the focus to total system profitability. Many factors favour manufacturer brands when total profitability is considered, including: Sales velocity: Shelfspace turnover is often higher for manufacturer brands. The velocity of leading manufacturer brands is often 10% higher. Profit per linear inch of shelfspace. Discounts and off-invoice allowances: Includes slotting allowances, listing fees, promotional deals, advertising and merchandising allowances, and credit for return of unsold merchandise. Promotional and advertising fees. Provision of ‘free’ logistics services: Includes transportation, warehouse and store labour, and merchandising help for the retailer. 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