The concept of private labels has come a long way in last ten years. Private labels mean products manufactured or provided by one company under a retailer’s own brand. In the beginning, private labels were used by retailers as differentiation element, but they have become a sine qua non factor in the portfolio of any player who wants to remain competitive.
The main products chosen for private labels are cleaning products followed by food and personal care products as well as soft drinks, spirits and stationery. Private label products are gaining strategic importance on the agenda of local retailers anywhere in the world. The market for own brand products is estimated to reach up to Euro1.2 billion this year after amounting to Euro 0.9 billion in 2010.
In the beginning, private labels were synonymous with very low prices, as the first such products were positioned on the low end segment. Lately retailers have developed their private label portfolio by targeting new segments. Private labels also mean business opportunities for local companies that go into partnerships with retailers to manufacture such products.
As for the long term strategy, Janito will continue production under private labels as long as there is demand and such partnerships are beneficial.