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So you thought private labels were the domain of the ‘less well-off’ did you?

Professor Steve Carter, Professor of Marketing

Faculty Blog

In the retail sector, primarily two forms of brand categories exist – National Brands (NBs) and Private Label Brands (PLBs) (see the Marketing course Module 11).  As Justin Beneke reports (Edinburgh Business School DBA thesis, 2014), ‘whereas in developed nations it is the hard-pressed consumer segment that represents the most attractive market segment for private label sellers, in South Africa it is the relatively affluent minority, with unfettered access to these brands. Although many lower income consumers do have access to supermarkets that sell private labels, transporting these goods back to the informal settlement (township) areas can prove problematic and costly. For example, domestic workers would need to pay for two seats aboard the taxi ride, due to carrying multiple shopping bags, if conducting the household shopping near a transport node en-route home’. Is there any other country in the world where private brands are almost exclusively the domain of the ‘well–off’?  Let us know please.