Information for fruit and vegetables business in CIS
Private Label practice is practically not used in Ukraine
A short survey conducted by marketing specialists of Agricultural Marketing Project (AMP) showed that the Private Label concept (supermarket chain trademarks) is nearly not used in Ukraine nowadays, however this practice is widely known in the world countries. In some countries the supermarkets sell nearly half of all stuff under their own trademark that let them decrease the price on the commodities by means of lesser expenses on advertisement and at the same time ensure the high quality of the commodities.
To the opinion of Inna Ponomarenko, Marketing and Agribusiness Specialist, AMP, in Ukraine the Private Label practice is mostly used in the shops of the international retailer SPAR. Under their chain trademark they sell nearly all types of commodities - from tea, cookies and mineral water to laundry powders. Still only SPAR soft drinks are of Ukrainian origin (produced in Dnepropetrovsk), all the other products under SPAR brand name are imported from Germany, Austria and Netherlands.
It is also noted that in some cases Ukrainian supermarket chains purchase the processing enterprises to produce there commodities under thier chain trademark, but this trend will hardly last long, according to the experts' opinion.
Meanwhile Inna Ponomarenko points out a sufficient potential of chain trademarks application in Ukraine, where the consumers are very peculiar to the price factor. It looks like at the nearest future we may expect that Private Label practice will be more frequently applied not only in the international supermarket chains, but also in the national chains. You can find the results of Private Label survey in the recent "Agrooglyad" journal issues.