In a nutshell, that describes how manufacturers of brand-name products react to competition from private labels. Collectively, private labels in the United States command higher unit shares than the strongest national brand in 77 of supermarket product categories. And they are collectively second or third in of those categories. But on the other hand, many manufacturers have overreacted to the threat posed by private labels without fully recognizing two salient points. First, private-label strength generally varies with economic conditions. That is, private-label market share generally goes up when the economy is suffering and down in stronger economic periods.
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