Brands vs Private Labels in Europe: The Rules Have Changed
Now that the ground rules have changed, the real question is simple: How can FMCG leaders win when private labels are evolving faster and consumers are switching more? If you’re serious about future-proofing your brand — and not just defending old ground — keep reading. The last section breaks down 7 actionable strategies that top-performing CMOs are already using to turn disruption into opportunity. 👇 Let’s dive in: Market Overview Europe’s supermarket shelves increasingly display national brands and retailer-owned labels side by side. In 2024, private labels hit a record share — about 39.1% of total grocery sales value (up 0.3 percentage points from 2023) (McKinsey). Surveys show 84% of consumers plan to keep buying store-brand products even if their income recovers (McKinsey). Key Drivers of Private-Label Growth 1. Economic Pressure (Value-Seekers) High inflation and cost-of-living pressures pushed consumers toward cheaper alternatives. Price-conscious shoppers powered private-label sales to record highs in 2023 (Deloitte). A Deloitte survey found 64% of executives expect more “trading down” and 78% of staple categories have already lost share to store brands (Deloitte). 2. Retailer Strategy Leading grocers treat private labels as strategic assets. Many retailers position select private label lines as “powerhouse” brands, investing in dedicated R&D, packaging, and marketing (McKinsey). McKinsey finds that retailers with higher store-brand shares are 2.8× more likely to gain market share (McKinsey). 3. Perceived Quality Parity Over 50% of shoppers choose private labels for their perceived quality, and about a third see no real difference from national brands (Kantar). This has eroded a key advantage of big brands: brand loyalty. 4. Consumer Trends & Culture Social media “dupe” culture, especially among Gen Z and Millennials, fuels private label growth (The Grocer). Examples: Aldi’s Lacura skincare and Boots’ Ingredients line successfully mimic premium brands at a fraction of the cost (The Grocer). Branded Products: Pressures and Responses Top-10 brands in many categories have quietly ceded share. Kantar finds the average leading brand in Europe lost ~0.14% of share to private labels over three years (Kantar). During economic downturns, brands typically recover only about one-third of lost share after recessions (Kantar). Successful brands focus on innovation and distinctiveness rather than price competition (Kantar). Kantar found “winning” brands raised prices about 20%, while losing brands raised prices 30% or more (Kantar). Consumer Behavior Trends 1. Value-First Shopping The ongoing cost squeeze has left consumers permanently more price-sensitive. 78% of staple categories have shifted to private labels, according to Deloitte (Deloitte). 2. Switchers (“Nudgeables”) Brands grow by targeting the 15% of consumers who are naturally curious and willing to switch products (Kantar). 77% of growing soft-drink brands were disproportionately bought by switchers (Kantar). 3. Health and Sustainability Consumers, especially Gen Z, demand “clean,” functional, and eco-friendly products (McKinsey). 45% of Gen Z focuses on health-conscious buying decisions (McKinsey). Category-Specific Insights Food & Grocery Private labels dominate staples. McKinsey projects private-label share to reach 40–42% by 2030 (McKinsey). However, niches like fresh produce, premium deli items, and functional foods offer opportunities for brands (McKinsey). Beverages Private labels thrive in everyday sodas and bottled water, but innovation (e.g., flavored waters, kombuchas) keeps brands competitive. Personal Care & Beauty One of the fastest-growing private-label categories (The Grocer). Retailers like Boots (Ingredients) and Aldi (Lacura) successfully compete with prestige brands through trendy, ingredient-led offerings (The Grocer). Household & Cleaning Private labels dominate in detergents and paper goods, but branded players focus on eco-friendliness and health differentiation (Deloitte). Company Examples Retailers Aldi, Lidl, E.Leclerc and others lead the charge. In Spain, Lidl’s private labels generated €1 billion in sales in 2023 (McKinsey). Brands Unilever’s Magnum and Lego (non-FMCG) used “award-winning” advertising to defend against private-label copies (Kantar). Nestlé and Danone segmented their portfolios to balance premium and value shoppers. Illustrative Cases Boots’ Ingredients line targeted The Ordinary’s fanbase (The Grocer). Aldi’s Lacura challenged luxury cosmetics (The Grocer). Brands like Nespresso (Nestlé) created direct-to-consumer models to bypass retailers. Strategies for FMCG CMOs 1. Leverage Data and Technology Data mastery is now a fundamental marketing competency, not an add-on. F500 companies leading the pack integrate AI not only in media buying and personalization but also in R&D innovation, demand sensing, and dynamic pricing. Example: Mondelez uses AI to predict flavor trends and optimize innovation pipelines for Oreo and Cadbury. In a world where private labels own the checkout data, brands must build direct-to-consumer (D2C) channels, loyalty programs, and partnerships that recapture consumer insights at scale. Without real-time feedback loops, brands will always be one step behind in adapting to shifting behaviors. Key Thought: “The brand that knows its customer best will win the next round of market share battles.” 2. Smart Pricing & Packaging Price elasticity has shifted dramatically. Brands that simply pass through cost increases without redesigning value propositions are losing ground. Smart pricing today involves creating perceived value that justifies any premium — and it must be visible at first glance. Tactics like offering new pack sizes (e.g., mini-packs, family bundles), personalized discounts, and value-added multipacks are vital. Packaging also plays a critical role in signaling brand superiority: eco-friendly materials, sleek designs, and informative labels can act as silent differentiators at shelf. Remember: consumers are buying experiences and trust — not just products. Key Thought: “Price is what you pay, value is what you feel.” 3. Target Switchers (“Nudgeables”) Today’s most valuable consumers aren’t loyalists — they’re the curious, flexible shoppers willing to try something new. Identifying and targeting “nudgeables” is more efficient than trying to reinforce loyalty in static audiences. Personalization engines, digital retargeting, influencer partnerships, and in-store sampling remain powerful tools to attract this high-potential group. Brands that dominate among switchers tend to recover faster and grow faster after downturns. Example: In beverages, Red Bull’s constant micro-innovation in formats and limited editions maintains “newness” that draws switchers repeatedly. Key Thought: “Growth doesn’t come from defending territory — it comes from winning undecided minds.” 4. Strengthen Brand Equity When price competition intensifies, emotional affinity becomes a critical advantage. True brand equity today hinges on authentic storytelling,
5 Marketing “Blockbusters” from 2024‑25—Are You Paying the Right Price for Every Second of Attention? 🤔
🚦 FACTS EVERY CXO NEEDS TO HEAR 1️⃣ Attention has a hard cost (even when the ad feels “free”). 2️⃣ The same second of attention can cost 45× more from one brand to the next. 3️⃣ Knowing your Cost‑per‑1K‑Seconds (CP1KS) lets you talk growth and efficiency in the same breath. Ready for the receipts? AGENDA: A: INTRO B: CASES ANALYSED C: THE ATTENTION-COST CALCULATOR D: 3 TAKE‑AWAYS HIDING IN PLAIN SIGHT E: MY CONCLUSIONS A: INTRO Marketers love to brag about impressions, but impressions alone are the marketing equivalent of counting footsteps without asking where you’re going. Over the last two years, I’ve sat in launch meetings where teams celebrated eight‑digit reach while the finance desk winced at eight‑digit invoices. That tension pushed me to build a single, human metric that lets creatives and CFOs speak the same language: cost per 1 000 seconds of real attention (CP1KS). Think of it as media buying’s missing speedometer—because you can’t optimise what you don’t clock. B: CASES ANALYSED Airbnb — “Icons” launch When CEO Brian Chesky unveiled Icons—overnight stays inside the Up house, a night at the Ferrari Museum, a jam session with Kevin Hart—traffic detonated. In the first 90 days the microsite logged 60 million unique visits and social chatter sailed past 1 billion impressions. Those outsized eyeballs expanded Airbnb’s brand perception from “place to sleep” to “access‑all‑areas culture pass,” setting the stage for new experience‑led revenue streams. T‑Mobile ✕ Starlink — Super Bowl LIX “A New Era in Connectivity” Buying 30 seconds in America’s biggest media moment is table stakes; multiplying its impact 12‑fold is not. According to EDO’s second‑by‑second engagement index, the sci‑fi‑tinged spot delivered 12.6× the online engagement of the average Super Bowl ad, vaulting it to No. 1 on Marketing Dive’s 2025 leaderboard. The kicker? Post‑game preorder traffic for T‑Mobile’s satellite‑powered handset bundle spiked 380 % week‑over‑week. Kraft Heinz — “Ketchup Fraud” crusade Heinz turned a consumer gripe—restaurants refilling iconic bottles with bargain ketchup—into a rallying cry. The omnichannel sting (DOOH, NY Times full‑page, snarky socials) harvested 438 million earned impressions, drove 92 % positive sentiment, and smashed Heinz’s social‑engagement benchmark by 128×. Within a month, 33 eateries switched back to the real thing, adding over US $250 k in incremental sales and nudging market share up 0.6 pts—all for a condiment everyone thought had peaked. Monzo Bank — “Money Never Felt Like Monzo” revival After five quiet years, the UK digital bank pulsed out a hot‑coral, 14‑channel blitz that swapped money dread for dopamine. Result: 250 000 new customers in the launch month—**66 %** above the prior month—and the first time brand awareness outpaced product chatter, according to Creative Review’s post‑mortem. The campaign also underpinned Monzo’s first annual pre‑tax profit (**£15.4 m**) and a £4 bn valuation round, proving ATL still moves needles in fintech. Spotify — Wrapped 2024 (10‑year anniversary edition) A decade in, Wrapped is still levelling‑up. The 2024 drop generated 1.5 billion social impressions, a 40 % lift in in‑app engagement during launch week, and a 10 % year‑over‑year engagement bump across 184 markets and 53 languages. By weaving creator call‑outs, hyper‑personalized slides, and a “daylist” teaser into the roll‑out, Spotify turned user FOMO into a flywheel that advertisers now pre‑book a year in advance. Why these five stand out · Hard metrics, not vanity. Each campaign ties creative flair to quantifiable lifts in traffic, engagement, or revenue. · Storytelling > spend. From a ketchup sting operation to a cinematic Super Bowl spot, narrative hooks powered outsized returns. · Cultural hijacking. They inserted the brand into moments people already cared about—pop‑culture icons, football Sunday, year‑end self‑reflection—then amplified with tech or community. C: THE ATTENTION‑COST CALCULATOR ⏱️ Formula Why it matters: CPM counts eyeballs; CP1KS counts time — the only asset that can’t be retargeted. 📊 Five blockbusters, one yard‑stick *Spends are the most transparent public figures available; where the brand bundles multiple initiatives, conservative allocations were used and assumptions noted. D: 3 TAKE‑AWAYS HIDING IN PLAIN SIGHT Earned > Paid 💬 Heinz and Spotify both engineered share‑triggers (calling out “ketchup fraud” & personal listening stats). Every repost extends seconds of attention at zero incremental cost. Big stages ≠ big waste 🏈 A Super Bowl buy looks extravagant, yet its CP1KS beats a year‑long experiential programme. The math: giant reach × fixed length dilutes the US $8 M sticker shock. Brand building still needs a meter 🏗️ Monzo’s surge to profitability came with a sky‑high CP1KS. Worth it? Maybe—if lifetime value justifies paying $91 for every thousand seconds. Without the number, the debate is feelings vs. finance. 💡 What to do on your Monday stand‑up · Measure dwell‑time, not just impressions. · Divide spend by seconds. See if you’re closer to Spotify or Monzo. · Optimise the multiplier. Can you spark shares, shorten formats, or syndicate at scale? E: MY CONCLUSIONS Every blockbuster here proves two truths: first, breakthrough storytelling still wins hearts; second, financial discipline turns those hearts into healthy balance sheets. CP1KS doesn’t kill creativity—it unshackles it by giving marketers permission to bet big where the math works and cut ruthlessly where it doesn’t. If attention is the new oil, then CP1KS is the refinery output: refined, measurable, and tradable across the org chart. Run the numbers on your next brief and watch how fast the brand team and finance become allies. 🧐 Your turn: Love or hate CP1KS, I want to hear your stance—does this metric matter? Let’s debate! 🔍⚖️ SOURCES Heinz budget & results — WARC case study — https://www.warc.com/content/article/cannes/heinz-ketchup-fraud/en-gb/155704 Spotify impressions — Renascence CX journal — https://renascencecx.com/spotify-wrapped-2024-stats Super Bowl viewership — Nielsen press release — https://www.nielsen.com/us/en/insights/2025/super-bowl-lix-viewership Super Bowl spot cost — The Sun ad‑rate report — https://www.the-sun.com/super-bowl-ad-cost-2025 Airbnb Icons metrics — PhocusWire recap — https://www.phocuswire.com/airbnb-icons-launch-metrics Airbnb spend baseline — Marketing Week CFO interview — https://www.marketingweek.com/airbnb-cfo-brand-investment-2025 Monzo spend & customer growth — Marketing Week profit story — https://www.marketingweek.com/monzo-profit-turnaround-2025 Super Bowl engagement index — Marketing Dive EDO data — https://www.marketingdive.com/news/super-bowl-lix-engagement-edo/ Heinz impressions — AToMiC Awards case — https://atomicawards.ca/winners-2025-heinz-ketchup-fraud
How First-Party Data and Social Proof Are Reshaping the Future of Marketing
🔥 The Biggest Shift in Marketing Is Here – Are You Ready? The days of third-party cookies and blind ad targeting are over. Brands that fail to evolve are facing:🚫 Higher ad costs with lower ROI🚫 Walled gardens controlling access to consumer data🚫 Skeptical audiences who ignore brand-led messaging 💡 What’s the answer? Owning your audience. The brands winning today aren’t renting attention—they’re building relationships through: 🔹 First-Party Data – Insights collected directly from consumers, fueling personalization and retention.🔹 Social Proof – The currency of trust, turning real customers into brand advocates. 💭 What’s at stake if brands don’t act now? 🚀 1. Dependency on external platforms – If your marketing strategy relies on Meta, Google, or TikTok’s audience data, you’re vulnerable to sudden changes.🚀 2. Generic, ineffective messaging – Without real consumer insights, you can’t personalize experiences that drive engagement.🚀 3. Missed opportunities for advocacy – If you’re not turning customers into vocal supporters, competitors will. ✅ Smart brands are already making the shift. They’re:✔️ Building branded communities to engage consumers directly.✔️ Owning their customer relationships instead of relying on ad platforms.✔️ Using real consumer voices to enhance credibility & conversions. The future of marketing isn’t just data-driven—it’s consumer-owned.
Social Proof Marketing in 2025
🎯 Are You Missing Out on the Power of Influence? 🎯 In a world where consumers are overwhelmed with ads and skeptical about brand promises, how do you build trust and drive real conversions? The answer lies in two powerful forces: Influencer Marketing and Social Proof. 🛑 Think about it: Would you trust a flashy ad—or a recommendation from someone you follow, admire, or relate to? Exactly. Trust is the new currency. And right now, people trust other people more than they trust brands. Studies show that 92% of consumers rely on peer recommendations and testimonials when making buying decisions. Yet, many brands fail to harness this trust effectively. By integrating influencers and authentic user testimonials, you’re not just promoting a product—you’re amplifying trust at every stage of the customer journey. Influencers provide:✅ Credibility through authentic storytelling✅ Social proof that builds FOMO (Fear of Missing Out)✅ Access to highly engaged niche audiences Social proof enhances:✔️ Conversion rates with reviews and testimonials✔️ Perceived value through community-driven trust✔️ Brand loyalty by reinforcing positive experiences Imagine a potential customer lands on your page and sees:• Influencer content showcasing how your product enhances their lives• Rave testimonials from real users highlighting your product’s value• Ratings and reviews that reinforce the trust factor This combination of influence and social proof creates desire—and lowers barriers to purchase. Whether it’s collaborating with micro-influencers, leveraging customer reviews, or integrating testimonials across touchpoints, the time to act is now.
Data-driven Marketing & AI Strategies for CMOs in 2025
📊 Is Your Marketing Driven by Data… or by Guesswork? 🤔 In a world overflowing with information, CMOs can no longer rely on intuition alone. To stay ahead, brands must embrace data-driven marketing, powered by AI, to make smarter, faster, and more accurate decisions. Yet, despite the buzz around data, many companies struggle to turn insights into real business impact. Here’s a challenge:💡 Are you leveraging your data to drive measurable results, or are you still stuck analyzing it without clear action? The key lies in adopting AI and automation to unlock the full potential of data and move from information overload to data-backed marketing excellence. Let’s explore some of the latest trends and strategies shaping the future of data-driven marketing: 🚀 Top Data-Driven Marketing & AI Strategies for CMOs in 2025:👉 1. Predictive Analytics for Hyper-TargetingAI can analyze past customer behavior to predict future actions, enabling hyper-personalized campaigns that anticipate customer needs before they even express them.👉 2. Real-Time Personalization at ScaleMove beyond generic messaging. AI-driven algorithms can deliver real-time, tailored content across websites, apps, and email, enhancing engagement and driving conversions.👉 3. AI-Powered Customer SegmentationUse AI to go deeper than traditional demographic segmentation. Create dynamic, behavior-based segments that adjust as customers interact with your brand.👉 4. Marketing Automation & Lead ScoringAutomate repetitive tasks like email follow-ups, lead nurturing, and campaign optimization. AI can also score leads more accurately, focusing your sales team on high-intent prospects.👉 5. Multi-Touch Attribution ModelsUnderstand which marketing touchpoints are truly driving revenue by adopting AI-powered attribution models that track the customer journey across multiple channels.👉 6. Sentiment Analysis & Social ListeningAI can monitor social media and online reviews to gauge customer sentiment in real time, helping brands respond faster to emerging trends or potential PR risks.👉 7. Data Privacy & Ethical AI UsageAs data-driven marketing grows, so does the importance of ethical AI practices. Prioritize transparency, consent, and compliance to build customer trust while delivering personalized experiences. 🎯 From Insights to Impact The future of marketing isn’t just about collecting data—it’s about turning that data into actionable insights that drive growth, efficiency, and customer satisfaction. 👉 How is your brand leveraging data to improve marketing performance? Share your thoughts, successes, or challenges in the comments! Let’s drive the conversation forward. 🚀
The Growth Dilemma: Keep Customers or Chase New Ones?
🎯 Are You Losing Customers Faster Than You’re Gaining Them? 🎯 In today’s hyper-competitive market, acquiring new customers is only half the battle. The real challenge for CMOs lies in keeping them engaged, loyal, and coming back for more. Yet, many brands continue to pour budgets into acquisition while overlooking the key to sustainable growth: Customer Experience (CX) and Retention. Here’s the hard truth:💡 It costs 5 to 7 times more to acquire a new customer than to retain an existing one.💡 A 5% increase in retention can boost profits by up to 95%. So, why are so many brands still bleeding customers? Often, it’s due to fragmented customer journeys, lack of personalization, or failing to deliver on customer expectations. Let’s explore how to reverse that trend by creating memorable experiences that drive retention and long-term customer value (CLV). 🚀 Top CX and Retention Strategies for CMOs in 2025:1. Customer Journey OrchestrationMove beyond traditional funnels and map every touchpoint of the customer journey, from discovery to post-sale engagement. Seamless experiences build trust and loyalty.2. Hyper-Personalization with AILeverage AI and data analytics to deliver real-time, personalized experiences at scale. From product recommendations to tailored email campaigns, personalization drives deeper connections.3. Loyalty 3.0: Beyond DiscountsModern loyalty programs are about more than points and discounts. Focus on emotional loyalty by rewarding behaviors (e.g., social engagement, referrals) and delivering exclusive, VIP experiences.4. Omnichannel ConsistencyEnsure a cohesive brand experience across all channels—whether customers interact with your app, website, social media, or physical stores. Consistency breeds familiarity and trust.5. Proactive Customer ServiceShift from reactive problem-solving to proactive support. Use AI chatbots, predictive analytics, and customer feedback to anticipate and resolve issues before they arise.6. Community Building & Brand AdvocacyCreate branded communities where customers can connect, share experiences, and advocate for your brand. Turning loyal customers into brand ambassadors strengthens retention and builds social proof.7. Measuring CX Impact on CLVImplement metrics like Net Promoter Score (NPS), Customer Effort Score (CES), and churn rate to continuously track and optimize the customer experience. Tie these metrics to CLV to measure real impact on revenue. 🎯 CX & Retention: The Cornerstones of Sustainable Growth In a world where customers have endless options, delivering a frictionless, memorable experience is your most powerful competitive advantage. CMOs who focus on retention and customer lifetime value are setting their brands up for long-term, sustainable growth.