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Private label is a major opportunity to enhance our
customer value propositions and support margins
by offering lower priced, attractive alternatives to
branded goods. Consumers are more willing to
try private label due to economic conditions – and
producers see it as a way to secure large, stable
volumes.
X5 is taking private label to the next level in three ways:
- Establishing a unified, coordinated approach across
our three formats
- Developing a segmented range of offerings, each
with a distinct own-brand identity
- Improving quality and promoting our offerings to
increase customer acceptance
Guaranteeing quality is essential for increasing
private label take-up by consumers in Russia,
where brand loyalty and trust runs high. X5 has
introduced strict quality controls within the product
development and production process and audits
manufacturing facilities on a regular basis.
X5’s market leadership, scale and supply chain
strengths give the Company unique advantages
for developing new offerings and growing volumes.
Our goal is to increase private label penetration as
a percentage of total assortment (SKUs) towards
the 50% level in soft discounters, up to 30%
in supermarkets and up to 10% in hypermarkets
over the medium term.
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Price Leader Segment:
Red Price own-brand range of products, and other
own-brands for alcoholic beverages
Mainstream Segment:
Five Pluses own-brand range, and other brands for
alcohol, seafood and baby care categories
Premium Segment:
Own-brand range of products and premium
alcohol own-brands under development
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