Supermarkets now have thousands of products with their own brand in most categories. With prices lower than products of the same kinds, private labels are the competitive strength of supermarkets, especially in the context of consumers tightening spending like now.
Supermarkets now have thousands of products with their own brand in most categories. With prices lower than products of the same kinds, private labels are the competitive strength of supermarkets, especially in the context of consumers tightening spending like now.
Standing in front of washing-powder shelves of a supermarket, Bui Thu Trang (living in Phuoc Hai Ward, Nha Trang City) is quite hesitant as there are more than 10 types of products from different manufacturers. After consideration, Trang chose to buy a 9kg package of laundry detergent, costing more than VND210,000, bearing the supermarket's own brand. She said that compared to similar products, the product of the supermarket's own brand is 20% cheaper while the quality is equivalent. Besides, buying products with private labels also earn more member points to enjoy promotions and receive gifts.
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According to Vo Dinh Dung - Director of Co.opmart Nha Trang, the supermarket has about 2,000 private label products, divided into 3 product lines. The line Happy focuses on items with simple uses and economical prices. The popular line Select comprises products with good quality and reasonable prices. The high-end line Finest concentrates on products manufactured from selected sources of high quality, environmental protection or manual production. Compared with similar products, products of Co.opmart brand are about 20-30% cheaper. The reasons are no costs for advertising, transporting, renting shelves, etc. So private label products are not only benefit consumers but also to manufacturers and retail supermarkets. In recent years, their sales have increased sharply, about 15%/year, higher than the average growth rate of whole supermarket sales. In order to promote private label products, every month, Co.opmart organizes "Festival of private label products" to introduce and deploy many promotions for consumers.
Lotte Mart Nha Trang also has two sections to display its own products with the brand choice L. Some choice L products like wet tissues, toilet paper and detergents are always among the top-selling items of the supermarket. Lotte Mart Nha Trang representatives said that the supermarket has more than 2,000 private label products, divided into two lines: choice L (regular line) and choice L Prime (high-end line).
The supermarket chain Vinmart and Vinmart+ also marks with a number of outstanding private label products such as VinEco (high-tech clean vegetable and fruits), VinMart Home (fibre and cosmetics), VinMart Care (body care cosmetics), VinMart Cook (pre-processed and processed food), and VinMart Good (natural and organic products).
At the above supermarkets now, products of their own brand see good growth rate. Private label products of supermarkets are ordered for processing at companies specialized in producing such products according to the supermarket's own inspection. Therefore, every private label product is guaranteed by 2 units (company and supermarket) for the quality of goods, making consumers more secure when choosing to buy. Currently, some supermarkets are considering and negotiating to order their products to manufacturers in Khanh Hoa, especially processed seafood, fish sauce, etc. This helps supermarkets reduce transportation costs, and bring the local products to their retail system better.
Mai Hoang
Translated by T.T
