Thats why private labels are so popular

By: Trademagazin Date: 2024. 07. 04. 12:09

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In recent weeks, the Pénzcentrum and the University of Debrecen have conducted a joint, large-scale survey to assess the opinion of domestic customers on commercial (private) branded and manufacturer branded products. Based on the opinions of more than 10,000 respondents, it can be concluded that private label products are not only a cheaper alternative, but also a quality choice in many cases. Let’s see the detailed results!

Advantages and disadvantages of private labels

Private labels offer many advantages to retail chains and manufacturers. For retailers, these products attract customers to the store, have high profit margins despite their lower price points, and have low or zero advertising costs. Using their negotiating position, representatives of the commercial sector can easily persuade manufacturers to produce these products.

For manufacturers, private labels provide a stable consumer market and income, as they can reach consumers without marketing costs. However, in exchange for a lower price, they get high-volume orders, which means a stable source of income. An important question for them is whether to display their name on the products, as they can create their own competitor on the shelves.