By the end of last year, Bill had a private label share of less than 19%, and this year in the first quarter, nearly 23%. The strongest development lies in the field of devil variety – dairy products, frozen products, meat, fruits or vegetables. Even this company assumes its additional increase. "At the age of five, we want to approach 30%," said spokeswoman Dana Bratánková.
With Kaufland, private labels (36) accounted for about 20% of total sales. The company has been offering them since 2000 and expects its further development, said Renata Maierl, spokeswoman for the chain.
Two years ago, the online shop Rohlik.cz was launched under its own brands. "We currently have 55 items of our private label in our product line, or 4 percent of the total line," said Michal Perlík, category manager, adding that the company expects a "big increase."
Something for something from the point of view of the manufacturer and the merchant
A manufacturer who wants to produce chain stores for own brands should consider pro and anti. In the case of a contract, for example, guaranteed withdrawal of goods and economies of scale, lower promotion costs and often especially the possibility of entering new markets are a prerequisite. The negative side is anonymity, the possibility of cannibalizing its own brand and sometimes even excessive reliance on the chain.
"The success of our own brands is based on careful supplier selection. We determine how the product will look and taste and define the principles of its composition. For example, none of our sausages contain a separate, we try to replace palm oil and the like. Not every manufacturer is willing to accept our claims, "said Lidlu's spokeswoman Holla.
Representatives from other chains also described their approach to dealing with potential private label suppliers. Billa organizes the proposals and sends the prepared specifications of the product to the suppliers approached. Based on this, suppliers will submit their product offerings.
"We work with the end-supplier to develop the packaging and then put it on the market. Before the product reaches the shelves of our supermarkets, the quality department of our company audits the production of the supplier, be it according to the rules and internal rules of the Rewe Group (the group under which Billa belongs, note red.) " , Said Bratanková.
Among other things, Globus is betting on its exclusive Honest Manufacturing brand, which manufactures its own products. "We import goods into our own brands so we have sufficient control over the origin and quality of these products," Gabriel said.
Rohlik.cz strives for a rigorous procedure. "Under the private label, we include products that should be one of the top in the market. We certainly do not want to see lower quality items appearing under the Rohlík brand, although they are not necessarily among the cheapest on the market. The development of our products is fundamentally ours, as well as the choice of packaging materials, "Perlík said.
Kaufland also has full control over the composition and quality from the beginning of the development of its products with names. "We are authors or co-authors of recipes. We carefully select suppliers and rely on trusted partners who can prove themselves with certifications like IFS or BRC, "said Maierl. She added that the company regularly conducts internal store audits and laboratory testing of its branded products. "We also manage the form and timing of communication."
Private premium brands have increased more
Even private labels within a single chain are not a uniform mass of similar quality or price. GfK researchers distinguish three categories of private labels. Premium, Standard and Economic. Last year's share of premiums rose less than 3 percentage points to 23%, while the other two categories fell (now more than 57% are now standard and economic ones are falling below 20%). Representatives in all three private label categories include Globus and Bill.
Private premium brands are therefore increasingly competitive with classic branded products (or brand name, not brand name). They are getting closer and more accessible. So these are not cheaper variants as they tend to be significantly above the market average as well as the brand's own products. "The customer no longer needs to perceive them as a substitute, but as a complete competitor of established brands," said Csengeri.
Own-label prices are currently around 75% of the brand's average price, and that difference is declining in the long run. GfK is most often purchased by families with children.