In the European food sector private labels represent a relevant and increasing share of total sales. Focusing on price strategies, recent theoretical papers conclude that private label development should cause a decrease in the price of national brands, while some empirical studies do not support this prediction. The aim of this study is to explore this empirical relationship for the Italian dairy sector. Using retail sales data, we study how prices of national brands react to private label growth. We find that the impact of private label development on national brand prices is product specific: a negative impact is registered by industrial products such as butter and mascarpone and by highly differentiated products such as yogurt. Positive effect is found in the case of traditional cheeses produced by strong national brands
Sckokai, P., Soregaroli, C., Impact of Private Label development across retail formats: evidences from the dairy market in Italy, <<REVUE D'ÉTUDES EN AGRICULTURE ET ENVIRONNEMENT>>, 2008; (87): 27-47 [http://hdl.handle.net/10807/125591]
Impact of Private Label development across retail formats: evidences from the dairy market in Italy
Sckokai, Paolo;Soregaroli, Claudio
2008
Abstract
In the European food sector private labels represent a relevant and increasing share of total sales. Focusing on price strategies, recent theoretical papers conclude that private label development should cause a decrease in the price of national brands, while some empirical studies do not support this prediction. The aim of this study is to explore this empirical relationship for the Italian dairy sector. Using retail sales data, we study how prices of national brands react to private label growth. We find that the impact of private label development on national brand prices is product specific: a negative impact is registered by industrial products such as butter and mascarpone and by highly differentiated products such as yogurt. Positive effect is found in the case of traditional cheeses produced by strong national brandsI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.