Assessing The Impact Of Manufacturer Power On Private Label Success In An Equilibrium Framework.

Private brand growth in emerging markets has not kept pace with the growth in private brands elsewhere. For instance in Europe and North America, private brands now constitute an average of 35% of total retail market share, compared to emerging markets, where market shares vary between 1% and 8 %. This study, examines the possibility that variation in private brand performance between developed and emerging economies is due to manufacturers’ market power. In most emerging economies, national brand manufacturers tend to be the sole producers of private brands. This supply arrangement implies that they have inherent market power and can deter retailers from pursing aggressive private brand strategies