Thursday, May 28, 2009

Private Labels taking over


As counting pennies is the new trend this year, then smart consumers are aware of the percentage added to the product, due to branding. They are not willing to pay it anymore. No Logo and Private Labels have their time to flourish. Anyone can manufacture a product they reason. Their only concern is filling the order on time and under the budget. Supermarkets have figured this out and are forcing their Private Labels in a quite powerful way. Not marketing them. No, that would seem wasteful. But through pricing policy. Together in the shelf with “ordinary” products, Private Labels have the competitive edge by the fact that supermarkets itself direct the prices. They are 15%- 35% cheaper than the others.

To me, they seem like commodities without a soul. Its not that I do not like cheap things. I love cheap things. But I do not like things made to be cheap in the robust way. There is no meaning in these raw objects.

But who says that sugar and eggs have to have a deep corporate mythology behind?

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