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
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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.