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Leading national brands facing store brands competition: Is price competitiveness the only thing that matters?

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  • Fornari, Daniele
  • Fornari, Edoardo
  • Grandi, Sebastiano
  • Menegatti, Mario

Abstract

Store Brands (SBs) have experienced a strong increase in both value and unit sales internationally during the last decades; thus their market share has been constantly growing. Starting from these considerations, the present work aims at deepening the topic of inter-brand competition within the FMCG market and, in particular, the market share trade-off between Leading National Brands (LNBs) and Store Brands. Our empirical analysis is based on panel data about 322 product categories sold within the Modern Grocery Distribution stores in the 2010–2013 period. Results obtained show: (i) the existence of a relationship between the increase in the LNB-SB price gap and the switching of market share from the former towards the latter; (ii) the consolidation of a change in consumers' purchasing preference in favor of SBs; (iii) the existence of an inverse relationship between the inter-brand competition intensity and the retail branding life cycle evolutionary stage, which is different for each product category.

Suggested Citation

  • Fornari, Daniele & Fornari, Edoardo & Grandi, Sebastiano & Menegatti, Mario, 2016. "Leading national brands facing store brands competition: Is price competitiveness the only thing that matters?," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 234-241.
    • Handle: RePEc:eee:joreco:v:30:y:2016:i:c:p:234-241
    DOI: 10.1016/j.jretconser.2016.02.001
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    Cited by:

    1. Massara, Francesco & Scarpi, Daniele & Melara, Robert D. & Porcheddu, Daniele, 2018. "Affect transfer from national brands to store brands in multi-brand stores," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 103-110.
    2. Fornari, Edoardo & Fornari, Daniele & Grandi, Sebastiano & Iuffmann Ghezzi, Alessandro & Menegatti, Mario, 2021. "Taking advantage of the gluten-free opportunity: Assortment as the key driver for modern grocery retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    3. Della Lena, Sebastiano & Timming, Andrew R., 2023. "Why do consumers prefer one brand over another? The economics and sociology of brand competitiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    4. Ali, Syed Mithun & Rahman, Md. Hafizur & Tumpa, Tasmia Jannat & Moghul Rifat, Abid Ali & Paul, Sanjoy Kumar, 2018. "Examining price and service competition among retailers in a supply chain under potential demand disruption," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 40-47.
    5. Koshksaray, Amir Abedini & Quach, Sara & Trinh, Giang & Keivani, Somayeh Bahoush & Thaichon, Park, 2023. "Brand competitiveness antecedents: The interaction effects of marketing and R&D expenditure," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    6. Mortimer, Gary & Weeks, Clinton S., 2019. "How unit price awareness and usage encourages grocery brand switching and expenditure," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 346-356.
    7. Hsiao, Lu & Xiong, Hui, 2022. "Store brand introduction, retail competition and manufacturers’ coping strategies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).

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