Influx

It looks as though P&G have finally had enough of the private label manufacturers “ripping off” its brand assets. The company just launched the its largest trademark infringement lawsuit to date to protect nine of its brands including, Crest and Old Spice.

As retailers expand and look to grow profitability, private label is one way of improving margins. Although Wal-Mart has been making inroads into the category in the US, its in Europe where “own label” is most powerful with some stores selling nothing, but private label goods.

In many instances these cheaper alternatives borrow heavily from their more expensive branded alternatives. They liberally use familiar colors and similar names to attract consumers to their products.

P&G’s case is against two private label manufacturers, Percara and Cumberland Swan Holdings. A quick visit to Percara’s website reveals that they manufacture a range of health and beauty products including,  Herbal Extracts.

As brands face more pressure from private label, it’s likely we will see more cases of this type.