FRANCE: THE RISE OF PRIVATE LABELS

Article Abstract:

Private labels represented 19.2% of the valuein supermarkets and hypermarkets in for the twelve months ending 25 October 1998, calculated monthly, up 1.1% from 1997. They represent 73.9% of the volume of the mixed frozen vegetable segment and 69.8% of the value, they represent 61.9% of the volume and 60.4% of the value for household film and foil wraps, 61.9% of the volume and 59.2% of the value for soybean sprouts, 51.7% of the volume and 53.3% of the value for cotton buds, and 50.6% of the volume and 46.8% of the value for cotton. National brands are spending increasing amounts on advertising, promotion, and innovation in order in order to stand up to the competition from private labels. They are also working on products which are complementary to private labels. Bonduelle has a hundred items but offers only an average of 25 per retail chain, alongside the retail chain's products. Bonduelle also offers its new products to retailers for their private labels when they are imitated by competing national brands. A SOFRES survey shows that the retail chains are not the ones which launch the most brands which keep their customers most loyal. Certain retailers are giving up their private labels. On the other hand, certain retailers managed to gain customer loyalty with a type of product which follows in the footsteps of national brands.

Frozen Vegetables, Frozen Fruit, Juice, and Vegetable Manufacturing

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FRANCE: SUPERMARKETS AND CUSTOMER LOYALTY

Article Abstract:

Customer loyalty has now become indispensable for supermarkets and hypermarkets, but the rules still need to be set clearly. In order to be effective, customer loyalty must be developed before, during, and after the sale. Several values are important in the subject of gaining customer loyalty. According to a survey by Cetelem, satisfaction, the criteria cited by 58% of the people consulted, is the dominant value in loyalty to a retail chain or to a brand, followed by personal contact, cited by 53%, ease of access and the choice of products was given by 46%, the promotions and reductions was named by 39%, the brands were cited by 35%, and habit was cited by 23%. This survey shows that hypermarkets were able to gain customer loyalty through ease of access and choice, cited by 63%, but they still have there were cut out for them in terms of personal contact, named by 13%, and brands, named by 29%. The feeling dimension is also a criteria to take into consideration if one wants to durably keep customers who are increasingly demanding to be taken into consideration.

Research Findings

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FRANCE: TREND TO REGIONAL PRODUCTS

Article Abstract:

Consumers increasingly want strong, typical flavours, a trend which benefits regional and local products which have stronger taste than industrial products. According to a survey by Eurial-Poitouraine, 54% of the French want authenticity and buy regional products twice a month. Of those surveyed 67% said that they buy these types of products because they have more taste. Of those surveyed 79% of the French want to find local products in supermarkets and hypermarkets. The retail chains have got the message: they are investing increasingly in the local product market. This move enables retail chains to improve customer loyalty.

Comment:

According to a survey by Eurial-Poitouraine, 54% of the French want authenticity and buy regional products twice a month.

Eurial-Poitouraine

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