Discount stores behind the growth of private labels

As a result of the advance of private labels, one out of five HUF spent on food is paid for a private label product. Private labels are less successful among household chemical products and cosmetics but their market share is increasing in these categories as well. Private label products are manufactured for sale in one retail chain only. The name of the chain might serve as the brand name (like Profi, Spar or Tesco or it might be ) or it might be different for each category, like Babylove, or Denkmit in dm. The proportion of PL products shows an increase in almost every type of store. In discount stores, 48 per cent of food and 47 per cent of household chemical products sold belong to a PL brand, with growth of 5 and 3 per cent respectively last year. In hyper markets however, the share of PL products dropped by 0,4 per cent last year. The product categories where private labels have an exceptionally high market share are: pet food, frozen products, breakfast products (like cereals), whereas they play a very limited role among hair care and mouth care products and men’s cosmetics.