Unknown until recently, major retailers'private labels or own brands, such as Aro, Nr.1 or TiP, havestarted gaining more and more ground and have reached, according toZF estimates, sales of 650-700m euros, that is over 5% of modernretail, considering the main benefits are related to price and thelack of promotion and marketing costs.
Thus, on a market where Romanians' consumption budget has gonedown by 10% on average since 2009, private labels are raking uprising sales and eating from the market share of establishedbrands.
Private labels have gained the most solid position in the foodsector, where they hold an over 9% share, almost double the oneheld on the overall consumer goods market.
Despite the recent upward trend, there is still growth potentialfor this segment.
Considering the domestic consumer goods market reached 13bneuros last year and is set to rise by only 1.5% this year,according to the latest survey by PMR Publications, private labelswill put over 660m euros into major retailers' pockets, from 480meuros last year, in line with ZF estimates.
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