The enigma of private brands in the emerging Mediterranean countries: The case of Israel

Purpose – The aim of this paper is to discuss the import of private branding strategy for retailers, manufacturers and customers. It seeks to focus on private branding strategies in the emerging MEDA markets, and, using Israel as a case study, aims to identify why the huge potential of private brands has not been exploited in these countries. Design/methodology/approach – Both secondary data and empirical studies of Israeli exporters and chain store managers were conducted to determine what strategies are used to market private brands in developed, emerging and developing MEDA countries. Also included is a case study based on an analysis of four separate periods of the marketing of private brands in Israel, which are very similar to those seen in other emerging MEDA countries such as Greece and Turkey. Findings – A review of private branding strategies in the MEDA countries reveals three different markets, each one managed differently: developing, emerging, and developed. The most attractive MEDA markets with regard to private brands for retailers and manufacturers are the emerging countries, which have the most rapid growth potential in this region. Originality/value – Few studies are to be found in the literature that are based on the development of private labels in emerging countries. Moreover, the paper is the first to survey such development in Israel, one of the most developed countries in the Mediterranean.