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Private Labels Still Cheaper

According to PMR's8217;s latest report 's8211; 's8220;Private labels in Poland 2006's8221; 's8211; in the first quarter of 2006, products sold under private labels across Poland continued to account for a fairly low share of retail chains's8217; total sales, relative to Western Europe. Nevertheless, the number of private label products is booming rapidly, especially in shops that belong to foreign operators. Based on PMR's8217;s estimates, as at the end of March, there were 18,000 products manufactured for foreign and domestic retail chains active in Poland. 's8220;This represents an approximately 80% increase over two years,'s8221; Malgorzata Machnicka, PMR retail analysts, explained. Retail chains are continually supplementing their assortments by additional private label products with a view to attracting price-sensitive consumers.



According to the report, all hypermarket and discount chain operators as well as nearly all foreign supermarket chains in Poland, have incorporated entry price own brands into their product assortments. Demand for the right quality, increasingly more perceptible among Polish consumers, has prompted retailers to develop private labels also in the middle shelf segment.



Tesco hypermarkets and supermarkets and the Leader Price discount chain have the largest offerings of private label products. 's8220;Tesco is a chain with one of the most dynamically growing collection of own brands in Poland, their number has increased by approximately 420% in the past five years,'s8221; Ms Machnicka added.



Yet, in Poland, own brands still mainly designate inexpensive goods. According to PMR, the average product manufactured for a retail chain is sold for only 49% of the average price charged for comparable branded merchandise. In some categories, the average own brand price is as much as 77% lower than the price of manufacturers's8217; brands.



In terms of bagged tea, toothpaste, shampoo, ice-cream and carbonated beverages, the average product bearing the retail logo costs more than a third less than its branded counterpart. The least significant price gaps (of approximately 30%) were noted in milk and diapers.



You are welcome to contact the authors of the report:

Malgorzata Machnicka, Retail Analyst

PMR Publications

tel. /48 12/ 618 90 63



Marcin Szaleniec, Retail Analyst

PMR Publications

tel. /48 12/ 618 90 62



More information on the report:



Marketing Department:

Tel. /+48 12/ 618 90 20

www: www.pmrpublications.com



About PMR:

PMR www.pmrcorporate.com is a publishing, consulting and market research company providing information, advice and services to international businesses interested in Central and Eastern Europe. With highly skilled staff, top ranked web sites and over ten years of experience, PMR is one of the largest companies of its type in the region.



PMR Ltd.

ul. Supniewskiego 9

31-527 Kraków, Poland

tel. /4812/ 618 90 00, fax /4812/ 618 90 08

www.pmrcorporate.com

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