By Mark Phillips
CHICAGO — Probably not surprisingly, the attendees at the Global Automotive Aftermarket Symposium can’t agree on whether private label products are a positive trend in the industry.
When 425 attendees were polled Tuesday using electronic audience response devices, 51 percent of distributors said they believed private label brands were a positive aftermarket industry trend. By contrast, 71 percent of manufacturers said it wasn’t a positive trend.
However, when the audience as a whole was asked if private label products were corrosive to brands, 68 percent responded yes.
Bruce Merrifield Jr., president, Merrifield Consulting Group, outlined the hurdles that private label products face. “When I go to Wal-Mart and look at Listerine versus their brand, Equate, I want mouthwash and I’m inclined to buy Equate mouthwash,” Merrifield said. Private label products typically aren’t enough to make someone make a second stop while product-shopping, he added. 
“The real question for a private label brand is whether you can build it up to a level where people will make a second stop,” said Bill Wade, president, Wade & Partners. So far, the answer to that question is no.
Other questions asked of the Global Automotive Aftermarket Symposium attendees:
Do you think brand suppliers should supply private label lines as well?
64 percent of distributors said yes
66 percent of manufacturers said yes
Do you think aftermarket private label brands can create stand-alone equity?
77 percent of the entire audience said yes
