Private labels are products labeled and sold under the brand of a retail chain or retail operator, which allows them to control the production process and ensure competitive prices. In the retail sector of Poland and Ukraine, private label occupies a significant market share, reflecting the importance of this segment for consumers and retail chains. Both markets are working to increase the presence of private label on store shelves, but they have some differences.
1. Market overview of own brands:
In Poland and Ukraine, the private label sector is showing steady growth, attracting attention to both large retail chains and small retail operators. This segment is represented by a wide range of products ranging from food products to household chemicals and household goods.
In Poland, there is a steady growth of the private label sector, which is stimulated by consumer demand for affordable alternatives to big brands. Large retail chains such as Biedronka and Auchan are actively developing their own brands, offering a wide range of products under the chain's brand.
2. Market share of private label in retail in Poland
The market share of private label in Poland continues to grow, exceeding 30% in some segments such as food and home goods. This reflects consumer confidence in the quality and availability of goods under the brands of retail chains.
For example, Netto has an approximate share of private label of 30%, while Biedronka and Lidl have 45% and 58%, respectively.
Examples of successful own Polish brands are “Własny Wybór” by Biedronka, which offers a wide range of high-quality food products at affordable prices, and “Aro” by Auchan, focused on the economic segment of the market.
3. The state of the private label market in retailers of Ukraine
In Ukraine, the private label market is also showing stable growth, although the share of this segment is still lower than in Poland (around 15-20%). However, Ukrainian retail chains are actively developing their brands, seeking to meet the needs of local consumers.
The share of own brands in Ukrainian retail is also growing, attracting the attention of both large international networks and national trading operators. This growth is driven both by the desire of networks to increase margins, but also by changing consumer preferences.
Among the successful Ukrainian own brands are “ATB”, “Auchan” and “Fora”. These brands offer a variety of products that meet the needs of Ukrainian consumers.
4th. Comparative analysis of successful private label strategies in Poland and Ukraine
Comparative analysis of private label usage strategies in Poland and Ukraine shows similarities and differences in approaches to marketing, product quality and innovation.
Large retail chains in both countries actively promote their own brands through various channels, including television and Internet advertising, promotions and discounts.
In Poland, marketing campaigns comparing private label and popular brands of manufacturers are very popular.
Biedronka, for example, chose an atypical direction for private label - diapers. They invest as much as possible in television advertising, spending crazy budgets on it. But people have already stopped associating Dada diapers with private label Biedronka, they perceive it as an inexpensive and at the same time high-quality alternative to expensive brands of diapers.
5. Quality of private label products and pricing
The quality of products under the brands of retail chains in both countries usually meets the standards, and the prices for private label products remain competitive in comparison with similar products from world manufacturers.
Unlike Ukrainian retailers, Polish chains may have lower margins or almost no earnings on some categories of private label.
Retail chains in Poland and Ukraine are actively investing in the development of new products and improving the range of their own brands, which allows them to remain competitive in the market.
