“Economic instability periods impact consumers’ purchasing power. Thus, we can notice their shifting to more affordable alternatives,” says Oana Lungu, a procurement manager for Kaufland Moldova and Romania.
Private labels are as much as 30% cheaper than major brands and this matters amid rising inflation.
Private labels gained 3% in terms of market share in the first three months of this year alone, weighing 26% in FMCG goods sales, in line with GfK data. Thus, the advance for the entire year is likely to revolve around 5-10%, in line with ZF estimates. This means additional sales of EUR1-2 billion in 2022.
(English version by Catalina Apostoiu)