This miracle weapon is what keeps Lidl and Aldi alive in these difficult times

By: Trademagazin Date: 2022. 10. 03. 18:58

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

Hungarian customers are spending carefully and judiciously: many are looking for entry-level products, premium food products are being sold less, and interest in own-brand products has also increased. While customers are saving, FMCG companies are forced to downsize, but to a certain extent they are also profiting from the situation: many people now prefer to turn to their own brand products – Pénzcentrum points out in a recent article.

Many people are trying out new private label products

Consumers are increasingly satisfied with the quality, taste, variety and innovation of private label products – and stick to them

– said Angus McOuat, McKinsey employee.

Our customers buy our own brand products more and more frequently and in more and more categories. In terms of the number of units sold, in the case of dairy products, every tenth product, while every sixth product in the case of cold cuts, comes from the own-brand portfolio. These products have a steadily increasing share within our company, they currently account for more than 3 percent of revenue, which means that in terms of the number of products, every twenty-fifth product is a private label

– explained Péter Klekner, managing director of Kifli.hu.

Private label products were initially attractive to the general public due to their lower prices, but these often led to disappointment. Today, companies have realized that they can only win customers’ trust by guaranteeing quality, so currently a wide range of private label products can be the link between the customer and the retailer.