The Impact of Culture on Own-Label Brands Performance

Own-label brands performance varies enormously across countries, with high penetration in western countries but limited success in Eastern countries. This study investigates the impact of national culture on own-label brands’ performance. Using the Hofstede model to apprehend national culture, we show that power distance and individualism have a significant impact on own-label brands’ performance and that this impact is partially mediated by retail market development (i.e. market size, store formats and market concentration). Our findings may help retailers to adapt their own-label strategy according to the culture of the nations they are operating in.