Domestically the growth in private label products has been huge, what with the likes of Aldi growth, expanding off the eastern seaboard to SA and WA and Coles and Woolworths continuing to push further into this space, accounting for approximately 16% of supermarket sales. It is no surprise that the non-traditional powerhouse retailer of Amazon is rumoured to be moving into this space within FMCG.
The Wall Street Journal is reporting that products could be rolled out as early as the next few weeks, across perishable foods and household items such as nappies and laundry detergents.
The competition between Woolies and Coles is no more dominant within the nappy price promotions. An unknown competitor Huggies bulk box at $28 can throw off a supermarkets forecasted budget in a couple of days, with consumers keen to save on a bugbear expensive purchase.
The Australian marketplace is an opportunity market for Amazon, which would place additional pressure on the likes of local electronics, toys and discount department stores, through their strong price comparison ability. Within the UK toy category Amazon holds up to 30% share of spend. Now with the introduction of FMCG to their range, Woolies and Coles have more than just Aldi and Costco to look out for but the online space will seriously challenge their marketshare.