The strategic role of private label

The aim of the contribution is to analyze the strategic role of private label, investigating the value perception by consumers and marketing competencies of retailers, highlighting the main reasons that justify the growing trend and the current market share of private label. During the time, retailers have gained trust and loyalty through the store and the relationships with customer. Today, these results are transferred on private label, which represents a relevant and strategic marketing driver in increasing market share for retailers. Private label is the lynchpin of the retailer’s differentiation strategy; its role contributes to increase empathy with customers, define relationships with elected suppliers and stimulate the growing up of the retailer’s capabilities to innovate in service and value proposition. At the first, a literature review on the private label concept is presented, analysing the different private label definitions and describing the evolution of store branding strategies, in the process of sustainable and durable competitive advantage generation. The second part of the work is based on a secondary data analysis, describing the private label current status in Italy and in the main European countries, underlining the main reasons that lead consumers to purchase private label. On the basis of literature review and secondary data analysis, the work involves an empirical survey about consumer value perception of private label. The survey investigates the value perception by 450 consumers, in terms of quality, price, packaging, space allocation, promotional intensity and customer satisfaction. Finally, considerations and managerial implications are presented about the effects of survey results on retail management, skills and competencies.