Private labels have gained ground at an accelerated pace in recent years, coming to account for 12 percent of the total value of the consumer goods market, compared to 2% in 2007, shows a GfK survey sent to Agerpres.
The number of households that bought at least once a private label from any retail format has reached the maximum as early as in 2011 – with more than 9 out of 10 Romanian households having bought private labels. The increase compared to 2011 was 3%, with the market share advancing from 9% to 12%.
Thus, whereas so far the segment growth was influenced by attracting new buyers, in 2012 the market reached a stage of consolidation, characterized by buyers who are loyal to private labels and who buy increasingly more categories or repeatedly buy the same products.
The best development is noticeable in the food segment, where private labels cover 17% of the total household consumption. In 2012 there have been significant increases in private label sales in categories such as yellow cheese (+ 8% of the category total), plain yogurt (+7%) and breakfast cereals (+6%).
Private labels are also a strong presence in the home care segment, accounting for 11% of the total. The items most commonly sold under store brands are paper products: napkins, kitchen towels, toilet paper and wet tissues.
‘The diversification of categories and market segments they penetrate – the development of niche brands, the entry on premium and super-premium segments, as well as the intensification of marketing and communication activities are the engines for private labels growth,” says Raluca Raschip, GfK Romania Consumer Goods & Retail Director.
The results published in the GfK Leaflet Monitor confirmed that 2012 witnessed an intensification in the promotion of private labels in retailer catalogs, with their share of the promoted products rising from 3% in 2010 and 2011 to nearly 10 percent last year.
The study is based on information obtained by monitoring household consumption in 2012 for about 90 categories of consumer products through the Consumer Panel’ research on a nationally representative sample of 2,200 households.
Present on the local market since 1992, GfK Romania has been Romania’s No. 1 market research institution for over 12 years now.AGERPRES
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