MILAN (Reuters) - Retailers in Italy have increasingly turned to private label products to help counter inflation and the loss of purchasing power of Italians, who have long been fond of big brands.
The market share of private label products rose to a record 31.5% of the total revenues of Italian retailers last year, from 30.4% the previous year and 28.3% in 2019, according to a study by Italian consulting services company The European House Ambrosetti (TEHA).
The cheaper end of private label production is growing more than the premium one, the study said.
"All the retailers are investing heavily in private label products," said Mauro Lusetti, chairman of Italian retailers' association ADM.
In addition to giving more control over prices, private label products allow retailers to respond better and faster to consumer needs, Lusetti added.
In Italy private label penetration is among the lowest in Europe, but this also means that there is room to grow, he said.
The volumes of private label products rose by 332 million euros ($364 million) at constant exchange rates in 2023, against a drop of more than 1.1 billion euros in overall retailers' sales.
"A tough 2023 has just closed, which saw a reduction in sales volumes in all distribution channels, from discounters to supermarkets to small services," said Valerio De Molli, TEHA managing partner and CEO.($1 = 0.9123 euros)