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Private label shows promise in personal care, beauty products

Two analysts expect retailers’ own brands to make more inroads in those aisles of the store as they pay more attention to product quality and consumer experiences.

Private-label brands are poised to make gains in personal care and beauty products. That’s the recent buzz from a number of analysts who watch consumer-purchase activity on store shelves.

Among those who believe so are Tom Custer, director of client development at Interbrand, and Carrie Lennard, beauty and personal care industry analyst at Euromonitor.

Quoted in an article on beautypackaging.com, Custer says retailers are placing a lot more attention on product quality and consumer experiences, among other areas. This thinking among retailers pushing their own brands is evident in brands such as Target’s Up & Up family of products. It started out as the Target brand, with the retailer’s well-known bull’s-eye logo on the front of the packaging. Target took the opportunity to reformulate some of the products, based on consumer feedback, and also to redesign the packages.

Today, Up & Up spans more than 800 products across 40 or so categories in Target stores, including the beauty and personal care aisles.

“During the recession last year, private label saw the highest growth globally that it has seen in the last five years, but despite this, private label only had a 2% share of total global beauty and personal care sales in 2009,” Lennard says in the article, adding that private label’s share in these segments of the store is “very low.”

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