engleski

Challenges of private label production by national brand manufacturers in emerging markets

Private labels have been present on the market for more than a century but have experienced an intensive expansion in the last thirty years. In emerging markets, like Croatia, where expansion of private labels has recently begun, their production is mainly in the hands of national brand manufacturers. The goal of the paper is to analyse strategies, risks and advantages for national brand manufacturers who are engaged in private label production. The results of exploratory research, conducted on the Croatian market, show that powerful manufacturers produce private labels mainly for strategic reasons to control them and to improve their bargaining position. Unlike them, weaker manufacturers produce private labels because they need to, in order to increase their market share and maintain their position in the distribution channel.

private labels; national brand manufacturers; Croatia

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