Private Label Marketing Performance: An Analysis of Historical Trends Using Theories of Cumulative Change and Punctuated Equilibrium

The article analyses historical trends in the development of private label and national brands using gradualist andpunctuated evolutionary theories. The purpose of the article is to unveil patterns that would give fresh insightsinto the growth of private label in relation to national brands. The study makes use of qualitative and quantitativedata on private label historical trends in four countries. While the literature has depicted private label sharegrowth as gradual and incremental in nature, this study found that it is only on average that the yearly increase inprivate label share could fit the gradualist description. In reality, the actual process is not always gradual. Often,a period of gradual change and/or stability is followed by a punctuation, and vice-versa. The applicability ofpunctuated equilibrium theory to the growth and market share development of private label is supported by theresults of this study.