Food from Poland 02/2018

Page 68

PRIVATE LABEL

Such private labels are usually not worse than brands, and certainly, at a comparable positioning – cheaper. In Poland, there is also a certain socially oriented type of policy towards the distribution sector – this can be seen even in the Sunday trading ban. The deflationary trend, inevitable in such a situation, limits the sales potential of the modern forms of business, and gives rise to situations whereby companies have to intensify their search for markets. Companies have already begun to compete for customer loyalty, aiming to attract the client with advantageous prices that surpass the competition. This translates to elevated costs and the need to offset said costs, which means that better financial

68

markets and not only), allow for the export of

terms of positioning by product class) and less

conditions of sales on export markets are

Polish products ‘cloaked’ in their names to 18

expensive. Therefore, we are forced to deal

most certainly hidden ‘in the price’. This con-

countries. The values, which fluctuate from

with protectionist measures – in regulations,

dition also places pressure on private labels

PLN 1.5 billion to nearly PLN 3.0 billion, are

administrative practices and in the media. It is

to export. Therefore, export of private labels

also significant and depend on local business

not my wish to be accusatory, but it is my be-

is a kind of light in the tunnel, i.e. a paradoxi-

conditions and competitive, executive offers

lief that our industry circles are far too latent

cal, but justified ‘boom in the downturn’. Of

from other countries. Another such compa-

in combating this phenomenon, and likewise

course, no two brands are the same – umbre-

ny organises its export and cooperates with

the relevant ministries – at the very least, both

lla brands and close to premium brands with

other exporting companies to Great Britain

the Ministry of Agriculture and Rural Deve-

their numerous representatives of the trade-

and several other countries, which together

lopment, as well as the Ministry of Foreign Af-

mark behave differently, and so will private

generate estimates even at the level of PLN

fairs should recognise this phenomenon and

labels of the so-called economy price. These

4.0 – 4.5 billion. Here, private labels have a

make suggestions to combat it. All the more

are two different strategies of a commercial

lot of clout, because both the scale of exports

so that in light of the recent Dentons report

company that can be realised in tandem, and

and the differences in the cost of manufac-

commissioned by The Polish Federation of

simultaneously. In general terms, however, the

turing are so significant that the business is

the Food Industry Union of Employers, there

downturn and the limitation in working hours

extremely profitable. Add to this a special

is no doubt as to the direction of the situation.

(not to speak of other restrictions in general

‘bonus’ resulting from price relations counted

The anti-measure may be a call for ‘revenge’

circulation, for example, the musings of the

by indicators known as the so-called terms of

because, as the main producer in the region,

authorities to introduce a retail tax) will trigger

trade, and we are dealing with the opportuni-

we have more to lose; and Poland is the only

deflationary tendencies. (As is evident, a re-

ty to generate price margins that guarantee si-

country in the region that has a visible over-

turn to inflation indicators of 1.3% and 1.4%

gnificant benefits that are mutually beneficial.

production of good food. For the time being,

is not a coincidence.) Companies of a certain

Interesting phenomena are also happening in

the current economic situation mitigates the

size that have cheap, attractive commodities

the field of wholesale trade. On the Polish EU

effects of a regrowth of protectionism, but it

will be able to ride out the storm. The more

borders, but not exclusively (a separate, very

– like everything else – has its end, and then

profitably sold, the better; and what sells best

promising segment is wholesale companies

what?

is export – at least in Poland and at least in

that organise export of consumer goods to

Given that we are already on the subject

the area of trade in food that is well and at-

Asia), umbrella brands are being established

of the economic situation, especially in the

tractively processed. Thus, both on the side of

specifically to target export markets, using

context of private labels – the current econo-

the demand (trade) and the supply (industry),

tried and tested recipes and packaging that

mic downturn favours these products, as con-

a strong tendency to seek solutions for export

have been commissioned (and obviously, also

sumers want to maintain their consumption

is created. Let us then, look after our private

suggested). This often results in hostile reac-

levels, albeit by spending less money. This is

labels – in particular, those for export. Defla-

tions from ‘the competition’, because our (Po-

an ideal situation for private labels, of which

tion is no piece of cake, especially when it

lish) products are usually better in quality (in

we have evidence from 2008 and 2009.

comes to producers.


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.