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Home > GERMANY > Geschftsveranstaltungen
PRIVATE LABEL: ITALIAN PRODUCTS ON EXHIBIT IN AMSTERDAM
Rome (Ign) - They make high quality products but never shown their brand, but the brand of another company. These are companies that work in the private label environment, who produce goods for third parties, especially for the large supermarket chains who sell these products with their own brand. The "PLMA's World of Private Label 2007" (http://www.plmainte rnational.com/) exhibition is dedicated to this industry, the most important European exhibition in the industry which will be held in Amsterdam on 22nd and 23rd May. It has become a must for all the retail networks who can meet up with the companies who supply the finished products. The last edition of PLMA's saw 1580 exhibitors from 62 countries take part. There were about 7200 visitors, naturally professionals, from 86 countries worldwide. And this year the Italian Institute for Foreign Trade (ICE) has organised joint participation for Italian companies.
The private label system has now taken on extremely important dimensions in Italy too. According to data collected in the latest Retail Tracking IRI research, which refers to 2005, the total turnover of Italian companies working in this field reached € 3.8 billion, 5.5% more than the previous year. The merit essentially goes to fresh food products, which recorded a 32% increase, followed by cosmetics, with a 23% increase over twelve months. Actually, these two sectors were a surprise and the operators have decided to invest in these area, attracting foreign investments too.
This positive data is the result of initiatives launched by the companies to go further than the traditional logic of production and sales, to attack the market in a new light: the most important being the policies imposed on the first prices and, on the contrary, on expensive products (so called Premium products). The development strategies have in fact been redesigned, giving priority to the positioning of products according to price, leaving research into higher sales volumes in the background and aiming mainly at a better definition of targets. This is a change in strategy which has been appreciated by consumers, so much so that at least two thirds of the shopping trolley of an average European family contains private label products, now present in 88% of the packaged widely consumed market sectors.
And private label is destined to grow even further. According to some research, the market share of third party products could reach 22% in Italy over the next few years. Italy is already one of the five main operators in the sector in Europe, with growth rates often higher than those recorded by the same products within their brands. Hence, this is a commercial system that could still provide large signs of growth, especially in the context of increasing internationalisation.
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