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Home > CANADA > Business events in Italy
THE 2007 CHICAGO PRIVATE LABEL TRADE SHOW: A WINDOW INTO A MATURE MARKET FOR ITALIAN FIRMS.
The 'private label' market - a term that indicates fast moving consumer goods such as food, household cleaning and beauty products produced by 'unbranded' firms for large retailers (supermarkets, drugstores and mass merchandisers) is getting bigger ever year. In the US, last year it reached a record turnover of 68 billion dollars. From the 11th to the 13th of November, Chicago will host the largest trade fair in the US for this sector: the Private Label Trade Show (www.plma.com), which will take place over a 24,000 square meter surface in the Rosemont Convention Center. The event is targeted towards industry specialists: in last year's edition there were 820 exhibitors but only 4,000 visitors, mainly buyers from large international retailers.
Italy was amongst the 35 countries that took part in the 2006 edition, and, after a successful experience, it has decided to participate this year too. As in 2006, the Italian official delegation has been organised by the Italian Trade Commission (ICE), and will include 16 players in this sector. More information on ICE's initiatives in the US to promote Italian private label firms are available on www.italianprivatelabel.com.
According to the latest data, published last January when 'Marca' - the major trade fair for this sector in Italy - took place, the Italian private label industry has an annual turnover of over 4.2 billion euros and it holds a 12.1% share in the retail market. A figure which is a far cry from the US, where the latest statistics show a 25.3% market share for private label products.
In order to grow, the industry in Italy has therefore adopted a diversification strategy. As well as medium range products - the so called 'flagship brand' products - private label firms have branched out into 'budget brand' products as well as into the upmarket sector, with organic or premium products. However, in 2006 'flagship brand' products still accounted for 84% of total turnover. But 'premium brand' products registered the highest growth (+19%).
On the whole, the outlook is very encouraging. The value of the private label market in Europe is expected to grow from 300 billion euros in 2006 to 430 billions in 2010. The US is a far more mature market, where - according to a recent research - private label products account for a quarter of the shopping basket for almost half of the consumers interviewed. For 20% of them the percentage is at least 50%, and 41% of US consumers claim to be a 'frequent buyer' of large retails stores' own brand products.
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