why supermarket branded products are successful – Corriere.it

The race for private labels does not stop. Private label brands continue to grow. In fact today, according to Nielsen IQ surveys, they are worth 31% of total sales of supermarkets, hypermarkets and discount stores. Practically almost one out of three products purchased by Italians under private label. Where does so much success come from? Of course, the price counts. In fact, private labels have a lower price than known brands. On average the difference is around 20-25% but, in some cases, it can exceed 40%. However, this does not affect quality as these lines are made by specialized companies that work on behalf of third parties, or by the same companies that own the big brands.

The producers are often the big brands

To verify who is the manufacturer, just read the label, where the name of the manufacturing company is often explicitly indicated. Thus, the uht milk of the Esselunga Equilibrio line produced by the Centrale del latte of Brescia while the durum wheat butterflies of Conad are made by La Molisana and the organic blueberry jam of Carrefuor comes from Apicoltura Casentinese. Watch out for: even if the factory from which they come out is the same, it does not mean that the products are completely superimposable. It happens, in fact, that the recipes are similar but not identical. They can, for example, vary in the percentages of ingredients or in the origin of some raw materials.

Growing investments

Distribution brands are investing heavily in private labels. The confirmation comes from Coop, which declared that it plans to introduce 5,000 new products. The obvious reason: direct management guarantees higher margins. Not only that: through the launch of specific lines, a brand can emphasize certain image features and, in this way, try to differentiate itself from its competitors. There are those – like Esselunga – who focus on organic and natural products, positioning themselves in the wellness area, and those – like Conad – who value regional specialties, thus emphasizing the link with the territory.

The phenomenon also affects electronics

The phenomenon does not only concern large-scale distribution but also involves brands specialized in electronics. An example comes from Mediaworld, which operates through a composite portfolio of private labels. They range from Peaq (consumer electronics) to Isy (accessories) up to Koenic (household appliances). Of course, it is probable that – especially in the case of higher price categories and products intended to last over time – consumers are, at least initially, a little more wary. A diffidence that can be overcome thanks to various factors, such as the intervention of the sales staff, the positive reviews of other customers or the characteristics of the after-sales service.