United States: The $100 Billion Opportunity For U.S. Grocers

What would have happened to Hulu and Netflix had they not taken the leap from content distribution to content creation? Had they clung to their existing business models rather than embracing original programming? Had they continued to rely on other companies to supply the products that drive customers to them? We don’t know for sure, but they may well have gone the way of Blockbuster. In any industry, if you’re only selling what is also sold elsewhere, you’re limited in your ability to differentiate, and that often means a race to the bottom. For grocers, the critical "original programming" opportunity lies in private brands. We believe strategy and execution in this area will determine who pulls ahead and who falls behind in the next five years. Why now? Private brand penetration in the U.S. has historically lagged behind Europe, but the gap is closing rapidly, with most of the market share shift of the last three years driven by more spending on private brands. The continuation of that transition over the next five years – from 18% market share to ~30% market share – represents over $100 billion in sales. The opportunity is considerable, and so is the work […]

Click here to view original web page at www.mondaq.com