The share of own trademarks in Ukraine in 2017 was 11.7% in terms of sales, while in Europe as a whole, according to data for 2016, it was 31.4% and was constantly growing.
According to a study by Nielsen, one of the limitations that networks face is the brand’s productive capacity.
“Sometimes it is difficult for networks to find a partner ready to produce a private label in the required amount. In most cases, brands are ready and have necessary production capacity. The dilemma is whether to produce a competing brand in the brand portfolio. Therefore it is important to develop small and medium-sized producers who are interested in production of own trademarks for networks,” the director for work with retail chains at Nielsen in Ukraine, Yuriy Lischuk, said.
In Ukraine, the main reason for the readiness of consumers to give preference to the own trademark of networks, according to the study, is the price: consumers believe that own brands are cheaper than the brand of manufacturers.
At the same time, in 2017 the number of buyers who believe private labels provides the best ratio of price and quality fell to 24% from 36%.
The main popular goods of own trademarks are grocery (rice, flour, sugar, etc.) – 78%, dairy products account for 70%, canned and packaged food products for 68%, house cleaning products for 60%, and paper products (toilet paper, napkins, etc.) for 59%.
