More than 55% consumers in Moscow and Saint Petersburg know of private labels in leading retail chains, ACNielsen reports in its latest research. About 30% have an experience of purchasing such goods.
Currently the private labeling is not as popular in Russia as in Europe, but many retailers mention this segment among their priorities. For example, Kopeyka discounter chain that gain 15% of its cash flaw from private labels aims to boost this figure to 50% in the future. The share of private labels in Pyaterochka (Kopeyka’s main rival in Moscow) exceeds 9% as well.
Experts admit the high potential of private labels, but mention some difficulties the industry may face while launching goods under self owned brand. Private labels become most profitable after its share reach the level of 50% of total sales, but currently many Russian retailers can’t afford throwing the suppliers bonus fees to the wind. Moreover not all market players are ready to manage their private labels as the category of goods. Currently just the price of private labels appears to be its main competitive advantage.
More than 55% consumers in Moscow and Saint Petersburg know of private labels in leading retail chains, ACNielsen reports in its latest research. About 30% have an experience of purchasing such goods.
Currently the private labeling is not as popular in Russia as in Europe, but many retailers mention this segment among their priorities. For example, Kopeyka discounter chain that gain 15% of its cash flaw from private labels aims to boost this figure to 50% in the future. The share of private labels in Pyaterochka (Kopeyka’s main rival in Moscow) exceeds 9% as well.
Experts admit the high potential of private labels, but mention some difficulties the industry may face while launching goods under self owned brand. Private labels become most profitable after its share reach the level of 50% of total sales, but currently many Russian retailers can’t afford throwing the suppliers bonus fees to the wind. Moreover not all market players are ready to manage their private labels as the category of goods. Currently just the price of private labels appears to be its main competitive advantage.
