Own brand is opportunity for smaller company

São Paulo-Manufacturers of consumer goods for small and medium businesses are rowing against the economic crisis. On the demand for own-brand items, in General, these companies have high producing sales for major retailers.
"This type of product gains strength in times of economic instability, as seen in countries that have gone through crises and incorporated the own brands with the goal of developing consumption. There must be something similar, "says analyst Kantar Worldpanel: consumer, Okorie.
He estimates that the chance of gains can be even higher considering that only 1% of sales in the Brazilian market corresponds to own-brand products. In Europe, this participation exceeds 30%.
The supermarkets in Spain, for example, selling food and drinks to toiletries and beauty. According to Oliveira, the own brands today represent 38% of sales in that country, a maturing obtained after an economic crisis.
The President of the Brazilian Association of own brands and outsourcing (Abmapro), Neide Montesano, sees many opportunities to the segment on the basis of the Brazilian economic moment, since consumers are more willing to try new brands to reduce expenses. "Historically in the world, in time of crisis, the brand benefits. We are very optimistic, "says she.
An eye in this movement, the manufacturer of dairy bet on agreements with big Salute supermarket chains to reach a greater number of consumers, company director, Marcelo Duarte. Today, the company produces yogurt brands Carrefour, Day% and Walmart.
"In the crisis, which determines the consumption is price, then the retail has sought increasingly to diversify the options of own brands available. We demand from the simplest items to the most elaborate, like Greek yoghurt ", revealed in an interview with the Executive INN. According to him, the manufacture of private label items accounted for 60% of the company''s revenue last year.
The segment of the Salute is one of the most promising, in the assessment of an analyst with Kantar. Darlington explains that this is a very concentrated segment still in traditional brands, which may emerge as a competitive chance to own-brand products, in General, cheaper. "In this respect, the market can still evolve more," wait.
The Salute Executive notes that this may also be a possibility of smaller firms compete with the Giants without large contributions.
"Put a product on the market requires sales force, which is not always occurs at the launch of a brand because of the costs. But with the so called own brands [to others] guarantee greater spraying, space in the gondola and delivery volumes, "reinforces the commercial Manager of the House Maní, Marcelo Costa. The food company produces manioc starch or tapioca and Granola bar.
Currently, 55% of the company''s revenue comes from private label products. "Our goal is to reach 60% by the end of the year and then evaluate if increasing this percentage. Without revealing exact values, Costa claims that the demand has gone up. "In this respect, the crisis has boosted our business and should stay that way, even with the economic recovery".
Okorie sees other opportunities on stage "embryonic" in terms of importance of own brands in Brazil. "It''s a market with plenty of room for expansion. For the industry, means an excellent opportunity to gain scale in production and dilute the fixed cost of the manufacture of its products ",
The House Manager Maní there are many financial advantages in producing own brands to a third party. "It would be worthwhile to continue advancing in this market because it is a simpler operation and guaranteed revenue".
Planning
Despite the strong demand, the President of Abmapro, Neide Montesano, points out that the industries must be prepared to maintain the level of activity in the post-crisis investments in product mix and innovation. "It''s necessary to have diversity. Go beyond the basics. In this market, you have to think that if an industry does not make a product of his own brand, the competitor will do and will occupy that space. "
According to the analyst of Kantar, the companies that stand out in this segment have invested "in innovation, extension of lines and, especially, value for money".
However, he considers that it is not enough to deliver quality with cost-benefit and retail support if the manufacturer fails to deliver in large quantity. "The break is always one of the biggest obstacles to the demand and loyalty of these compromises," he adds.
LençoBrás Director, Alejandra Orenstein, account that was observing these factors and researching consumer trends in the international market, the company expanded its production and baby wipes for the segment of own brands. "We take this time to retain our brand in the market. The proposal is to combine innovation, quality and punctuality at the point of sale ".
For her with investments in innovation you can compete on equal footing with the market leading brands. "When the perception of quality, we see that the own brands are able to compete on equal terms. That''s what drives our business in the category, "says Alejandra.
Costa, Manager of Casa Maní, the retailer says will always look for a vendor that already have a production line ready to meet the demands of consumers, especially in times when large investments can be in the background. "This is one more opportunity to have presence in the gondola", he concludes.