Private label sales exceeded EUR900 million last year, as Aro, Marca 1 or TiP products are more and more often found in the shopping baskets of Romanians seeking the lowest price, the main purchase criterion during this period.
“Private labels’ sales rose against last year, with the introduction of new prodhttp://dms.mpinteractiv.ro/index.php?m=library&s=edit&id=8350130&tplid=12762&__TIME=1308254787952ucts through the Fine Food, Horeca Secelt, Rioba, Sigma brands. At the same time, professional clients have been open to private label purchases, appreciating their advantages, particularly a more advantageous price compared with similar products,” says Adina Tamplaru, corporate communications manager with Metro Cash&Carry Romania.
Despite the upward trend registered lately (the value of the private label market grew by around 57% in 2010 against 2009), there is still growth potential.
In other countries in the region, private labels account for more than 20% of the total retail sales. In Hungary, private labels have a market share of 28.1%, in Poland the share exceeded 21%, while they account for 19% of Czech retailers’ sales. In Romania, the percentage is significantly lower.
Private label sales accounted for 5.8% of the overall market last year, according to data provided by GfK Romania. The overall retail market was worth EUR16 billion last year, as calculated by Contrast Management Consulting. Thus, a simple calculation shows private labels reached sales of EUR928 million in 2010.
The prices of private label products are 10%-20% lower than those of national brands as a rule, as promotion and marketing costs are virtually eliminated.