EDITORIAL - PLM
Generation Z,
the challenge of large-scale distribution «Also during the pandemic, private labelled products have responded to consumers’ need for security and convenience, with savings of up to 100 euros per household, for a total of more than 2 billion», affirms Marco Pedroni, chairman of Adm Associazione Distribuzione Moderna at ‘From emergency to sustainable recovery: the contribution of Private Label’, a convention organized by Adm and BolognaFiere. In fact, considering the increasing uncertainties resulting from the pandemic, the 2020 statistics recently released by PLMA confirm consumers’ loyalty towards private labelled products. PL products’ market share in 2020 was indeed over 30% in 16 of the 18 European countries analyzed by Nielsen - a well known company founded in 1979 with the purpose of promoting private labels -, for the PLMA’s 2021 International Private Label Yearbook. Nearly half of the countries reached shares above 40%, whereas the majority of them recorded a positive trend in terms of market penetration. According to Richard Cope, Senior Trends Consultant at Minten, 2.6 billion consumers of Generation Z represent 40% of global buyers and a great opportunity for suppliers and producers of private labels. Convenience, health and sustainability are key values for these young people, who are more concerned with social responsibility, the health of the planet and their own wellbeing. Generation Z consumers expect retailers to promote a healthy lifestyle, but, at the same time, to pay special attention to the value for money. That same generation whose purchasing power is growing and that is increasingly turning to new purchasing channels. For example, eCommerce Food is among the most emerging areas of online shopping. The numbers are clear: in 2020 Food&Grocery online market equaled 2.7 billion euros, recording an upsurge of +70% compared to 2019. The growth, amounting to about €1 billion in absolute value, is the highest ever. This is an opportunity for retailers, but also a challenge of loyalty. Investing only in pricing can attract budget-conscious buyers, but it’s not enough to attract new and younger clients all the way into their stores. How will brands manage to stay relevant, bringing shoppers offline and into the aisles, while competing for brand loyalty?
Maria Teresa Manuelli Editorial director
