GfK study: Privately owned brands beat economical crisis

Marketing, Studies

A GFK study monitoring households consumption shows that, during last years, privately owned brands posted an accelerated growth, reaching to a 12% share of the total value of large consumption goods market, from 2% in 2007. The growth compared to 2011 is of 3%, up from 9% to 12%.

The number of households that bought at least once a privately owned brand in any retail format achieved the maximum potential since 2011, with 9 out of 10 Romanian households buying this kind of brands.

This way, if until now the growth of the segment was influenced by attracting new buyers, the market reached in 2012 to a consolidation stage, with consumers being loyal to privately owned brands and buying from more and more categories or buy repeatedly the same products.

The best development of privately owned brands is seen in the food products sector, where private brands represent 17% out of the total value for household consumption.

The diversification of categories and market segments they enter on – developing the niche brands, entering premium and super-premium segments – but also intensifying marketing and communication activities are growth engines for own brands products

Raluca Raschip,

Consumer Goods & Retail Director GfK Romania.

GfK Leaflet Monitor results confirm the fact that 2012 was defined by an intensification in private brands promotion within retailers’ catalogs: in 2010 and 2011, around 3% of promoted products were own brands, with their share reaching to 10% last year.

The study is based on info obtained by monitoring households consumption in 2012 in around 90 categories of large consumption products, on a sample including 2,200 homes, representative at national level.

Starting January 2013, GFK Romania replaced the classic method to collect data with an innovative solution: it replaced buying journals with scanning bar codes for large consumption products. Also, the number of monitored households reached to 3,000. Once with those changes, GfK increased the number of monitored categories. GfK Leaflet Monitor, made by GfK Romania since 2004, analyses promo catalogs from all retailers present on local market. GfK Leaflet Monitor is a tool implemented also in Czech Republic, Slovakia, Hungary and Bulgaria