1、Fighting backagainst privatelabel onlineHow eCommerce leaders can earn afairer share on the digital shelf throughinfluence,activation and partnershipsSEPTEMBER 2024Executive summaryRetailers are increasingly giving preferred placement to private labels in onlinesearch as a way to maximize profits an
2、d win with value-conscious consumers.However,over-showcasing private label could put category growth at risk.CPG brands must embrace their role as category advisors and help retailpartners develop a private label strategy that balances profit,growthand consumer choice.CPG sales leaders must work clo
3、sely with marketing teams to ensurethat everything is being done to differentiate against private labels onthe digital shelf.Fighting back against private label online2Boosting private labels organic share ofpage 1 search doesnt always translate intoproportionally larger sales increases forprivate l
4、abel products.Sales leaders shouldnt shy away fromdiscussing private label search in JBPs andretail media negotiations,ensuring theirbrands get a“fair share”of organicplacement as a reasonable ask in return formedia and trade commitments.Private label may win on price,but nationalbrands have the adv
5、antage when it comes todeveloping differentiated content andinnovations because they deeply understandthe consumer.While increasing private labels onlinepenetration may help retailer merchants hitprofitability goals,it could undermine categorygrowth and digital penetration objectives.Profitero found
6、 that overall year-on-yearcategory growth was 5pp higher in categorieswhere private label sales share had declinedand Page 1 search share was lower.CPG brands must accelerate the practice ofeCat Man and upskill teams on how tocombine digital shelf(search)analytics andomnichannel sales data for JBPs.