Private labels a new retail trend
A new trend is emerging on Vietnam’s retail scene – private labels – and it could reduce the price of everyday goods and help regional specialty foods find a much wider market.
Local retailers are teaming up with manufacturers to produce various ranges of private labels, in a new strategy to attract customers and boost sales.
Citimart is among the Vietnamese retailers planning to market private-label goods. Private-label goods are usually produced by well-known manufacturers but are labeled with the retailer’s own brand name.
Nguyen Thi Anh Hoa, Citimart director, said the supermarket will focus on private-label foodstuffs, as well as regional specialties.
Hoa said various specialty items had been developed around Vietnam over centuries but none of the goods were branded and sold in shopping malls. “We want to be the first to put our brand on such special products,” Hoa said.
Fish sauce from Khanh Hoa Province’s Nha Trang Town will be among the items to carry the Citimart label, she said.
“Private labels were introduced in Vietnam a couple of years ago but they have been used for quite a while in other parts of the world,”
Big C Private Label Director Nguyen Thi Phuong Thao said.
Thao said private labels were reported to have increased sales by 25 to 55 percent in Europe.
German wholesaler Metro Cash & Carry introduced private labels to Vietnam with a range of private-branded foodstuffs sold throughout its grocery store chain.
Saigon Co.op, the country’s leading retailer, followed suit, developing its own Co.opMart brand for frozen and dried foodstuffs and the SGC brand for clothing.
Thao said Big C, an affiliate of France-based Casino Group, owned the Big C and WOW labels, which were carried on 80 items, including coffee, furniture, handicraft and clothing.
Big C plans to work with local producers to develop a Casino brand for export, Thao said.
Hoa said private-labeled goods often retailed for less than big-name brands because the items went from producers to consumers without any middle-men in the supply chain.
Maximart Manager Nguyen Thi Phuong Thao said her company was also planning a private-label range to be released in coming years to strengthen the Maximart brand.
Electronic and mobile phone retailers have also ventured into private-label territory. But unlike supermarket chains, which mostly plan to use local products, electronic and mobile phone retailers use their own brands on overseas-manufactured goods.
Nguyen Kim, the country’s biggest electronic, electrical and air-conditioner retailer, uses its own Blocker brand. Rival Thien Hoa uses Fujiyama, iDeas brands and Hitoshi brands. Thanh Cong Mobile developed Bavapen for its range of private-labeled cell phones.
Tran Quy Thanh, chairman of softdrink and beer maker Tan Hiep Phat, said the group is interested in using private labels to export beverages through its overseas retail chain.
Ngo Thi Bau, chief executive officer of garment maker Nguyen Tam, said using private-labels could be especially effective for small and lesser known businesses.
Thanhnien
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