PRIVATE LABELS FROM THE EXPERT'S PERSPECTIVE

The third edition of the PLME Future of Private Label 2016 - the expo and conference commences four months' time. The new edition gains favourable reviews. The Polish private label market seen by industry insiders and practitioners, people with hands-on experience in private label implementation in retailers - large ones and those somewhat smaller. Today opinions from the Netto Poland network. Daniel Grabka - the director of purchasing was asked to provide his opinion.

- The last two or three years have been slightly slower for the private label segment. Not because the quality has worsened, but branded-products suppliers offer competitive prices. In recent times they have been more willing to invest the price, which makes private labels competitiveness level decline. On the one hand, this trend has a negative impact on the sale of this products portfolio, yet on the other hand it forces retail chains to investment in quality and innovations of themselves, packaging, promotional activities. Needless to say that some private labels have become genuine germs - they are not at all inferior to their well-known, branded counterparts. In summary, this trend is actually very beneficial for the client, though transient. The logics the market follows is that healthy price proportions must be restored, primarily because a long-term price depreciating is not in the big corporations' interests.

Therefore from the point of view, retail chains find it important to continue enhancing white-labels' strength, only with long-term efforts they can generate considerable market capital and the added value for the customer.

In the Netto we now have 423 active private label lines. We do not act under the spur of the moment or flavour-of-the-month fashions. We have consistently invested in private labels development. Last year as well as this year we have focused on strong image boosting for our strongest brands. We have also entered the premium sector by introducing a rich line of exclusive Premieur products.

I have not had the pleasure of participation in Kielce's Expo and Private Label Conference Private Label Made in Europe. Certainly Polish market lacked an equivalent to the Dutch large PLMA "World of Private Label". From my point of view - a possible participant - it is very important for Expo organizers not to focus only on products. They should also present things that help to make products stand out of the crowds in the market - i.e. trends in packaging, design, modifications, new technologies, interesting media, sources of synergy. A private label is more than just the product itself, there is a whole concept which distinguishes a particular retail chain on the market. It is very important to focus on the know-how rather than another chocolate or washing powder.