Personal label saving Korean retailers
In this article (5)
As South Korea’s giant retailers are affected by damaging progress, personal manufacturers (PB), or personal labels (PL) are providing a ray of sunshine to Korean retailers.
Gross sales of personal branded items have elevated 20 to 30 per cent within the first quarter in comparison with the identical interval final yr.
PB items are often 20 to 30 per cent cheaper than different model items, and as they’re turning into more and more widespread, extra clients are constructing belief in sure manufacturers.
Gross sales of Residence Plus PB items within the first quarter elevated 21 per cent, whereas gross sales of all items mixed solely elevated zero.9 per cent. PB merchandise now account for 28.four per cent of Residence Plus merchandise.
Gross sales of PL items additionally elevated 15.four perc ent at E-Mart, whose administration report their 1.1 per cent gross sales improve within the first quarter – the primary year-on-year constructive progress price in 13 quarters – was because of the reputation of PB items.
Gross sales of PB items on the CU comfort chain additionally elevated 7.6 per cent for the primary quarter in 2013, 9.1 per cent in 2014 and 22.eight per cent for a similar interval this yr. Gross sales of such items at 7-Eleven elevated a record-high 34.eight per cent.
A person with information of Lotte Mart’s operations stated that though there was some distrust in personal manufacturers up to now, nowadays they’re among the many best items, as they’re produced by well-known producers.
CU stated that it will give attention to creating private hygiene PB items sooner or later, because it has been solely creating snack PB items up to now.
House Plus additionally stated that it will improve PB manufacturing, saying that as greater than 90 per cent of PB producers are SMEs, the present growth might additionally end in a constructive synergy impact on them.
Questions & Answers
Q.Which retailers are seeing the most significant growth in their private label sales?
Which retailers are seeing the most significant growth in their private label sales?
7-Eleven recorded the highest increase with 34.8% growth in private label sales. Home Plus saw its private brand sales rise by 21%, while E-Mart's private label goods increased by 15.4%.
Q.How much cheaper are private label items compared to other brands?
How much cheaper are private label items compared to other brands?
Private label goods are typically 20% to 30% cheaper than comparable branded items. This price difference contributes to their growing popularity among customers seeking value.
Q.What is the primary reason for the increase in private label sales?
What is the primary reason for the increase in private label sales?
The main driver for increased private label sales is their lower price point, being 20-30% cheaper than other brands. Consumers are also building trust in these products as they become more widespread.
Q.Which specific product categories will CU focus on for future private brand development?
Which specific product categories will CU focus on for future private brand development?
CU plans to concentrate on developing personal hygiene private brand items in the future. Previously, their efforts had been solely directed towards creating snack private brand goods.
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