Private Labels of SA major retailers Take a journey down the shopping aisles of South Africa s major retailer s private brands

Transcription

1 s of SA major retailers 2017 Take a journey down the shopping aisles of South Africa s major retailer s private brands

2 Welcome to Trade Intelligence s Private Label Photo Feature What is a Private Label? PRIVATE LABEL There is often confusion around the difference between private label, confined label, dealer own brand, exclusive brand and house brand. These terms are often used interchangeably and sometimes incorrectly. As such, please refer to the below definitions for clarity, the term private label encompasses both. For the purpose of this report, focus remains purely on private brand. Housebrand Private Brand Dealer-own-Brand Exclusive Brand Confined Label Private brand, Dealer Own Brand and House brand: A brand of product(s) that is exclusively manufactured by a contract or third-party manufacturer for a retailer, according to retailer specifications, and sold under a retailer s brand name. Private brand is often tiered according to good, better, best brand positioning, however these tiers are defined differently across retailers i.e. some might refer to premium / national brand equivalent / value or fit for purpose. Globally, certain retailers (i.e. Lidl) are moving towards vertical integration with their private brand products (i.e. owning the factories which private brands are manufactured in). Confined Label, Exclusive Brand: A brands of product(s) owned by a manufacturer or producer but exclusive rights are given to a retailer to be the sole distributor of the product to the market. This Photo Feature will take you on a journey down the shopping aisles of South Africa s major retailers, showcasing their most prominent private brands.

3 SPAR carries private and confined brands, the following focus purely on private brands where SPAR offers good and better product tiers with packaging being the differentiator on shelf SPAR Brand (better) - As good as the Best, for Less positioned alongside the market leader. SPAR Freshline (better) From good to great in fresh SaveMor (good) - the pricefighting, fair quality housebrand SPAR Tender & Tasty (best) My butcher s choice

4 PnP s private brands forms the heart of every store, and is regarded as a key differentiator and tiered as good, better and best PnP Finest (best) Premium quality products aimed at upper LSM shoppers No Name (good) - Value offering with refreshed packaging design Pick n Pay (better) - Quality products promoted alongside national brands

5 Boxer private label is regarded as a route to competitor differentiation offering cost-effective ways to shopper and tiers as good and better, assisting Boxer to deliver on its never pay more than the Boxer price promise Boxer Brand (better) the best available quality products at competitive prices across all categories Red Glove (good) Valuefor-money products that fulfil basic commodity needs and a low-price

6 Shoprite private brand, RiteBrand aims to be the cheapest product on shelf without compromising on quality, and is available in all basic commodity categories, with significant on shelf presence and merchandised next to the brand leader. Shoprite carries an extensive range of exclusive brands, the following focus on the Shoprite private brand. Ritebrand lowest price on shelf reflects Shoprite s low price positioning

7 A large investment has been made to establish the Checkers housebrand as a guaranteed quality product at an affordable price, receiving prominent position throughout the store and strong focus on leaflets. Checkers also carries an extensive range of exclusive brands visible throughout the store. The following only focus on the Checkers private brand. It is commonly merchandised at eye-level in close proximity to the brand leader

8 OK Red Label is always priced lower than the market leader to ensure customers receive real value and assured quality. OK Red Label is well represented across most categories

9 Woolworths is unique in the South African food retail market with approx. 90% of its product range being private label. The WW aim is to build and maintain credentials as the food leader, specialist and benchmark in SA. Approx 10% of national brand presence on shelf WW is working to improve value perception with its daily difference offering

10 Makro s range includes both private and exclusive brands, with the M brand being the Makro flagship private brand and First Value the value-for-money offering The Aro brand is prevalent across Massmart Wholesale operations, offering Makro and Masscash commercial customers a strong value alternative Makro have introduced well known and successful Walmart private label products such as Great Value, Equate and Marketside

11 Game has multiple private brands which vary across categories, below are some examples Homestead and Little One private brands are positioned to compete on both price and quality with the brand leader Game have introduced well known and successful Walmart private label products such as Great Value, Equate and Marketside Logik and Always Home private brands receive prominence in the home entertainment and homeware categories respectively

12 Approx. 20% of Clicks product range is made up of private and confined label, which is strategically used to recruit new shoppers, as well as to provide a point of differentiation in competitive categories such as baby and supplements.

13 Dig A Little Deeper You ve read the overview now improve your insights into the SA Trade with these detailed reports Comparative Shopper Marketing at Retail Report Gain insight into the trends driving your marketing spend in your key customers stores with this visually-detailed comparative Report. Independent Wholesale and Informal Retail Channel Report Build a winning Route-to-Market Strategy. Independent Wholesale and Informal Retail Channel Report Evolution of the Wholesale & Informal retail channel Size, scope and growth of the major Wholesale players Informal Independent Retail value, formats and trading habits Insight-driven supplier opportunities The key trends at play: the impact and implications for consumer goods manufacturers South African Economic Report Understand the impact that changes in key economic indicators have on your business Malls to Markets Report Your essential guide to consumer goods retail in South Africa. Would you like to know more? Contact Talisha on +27(31) or talishaw@tradeintelligence.co.za

14 Disclaimer These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects. Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein. TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein. TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy. * TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence