ECONOMY

Private-label products continue to see sales grow during crisis

Private-label products in Greece have shown remarkable growth since 2007 as lower prices compared with brand products render them particularly popular in conditions of reduced disposable income, according to a survey by ICAP research company published on Tuesday.

The average annual rate of turnover growth for products bearing the label of the supermarkets selling them amounted to 11 percent in the period of 2007 to 2011, while their market share exceeded 20 percent in 2011, according to ICAP. However, this still lags the equivalent share in other European countries, especially in the north of the European Union.

For 2012 the growth rate of private-label products’ turnover is estimated to have slowed down to 4 or 5 percent, and a further correction is expected this year, according to market professionals. This is due to the general decline in the number of products that consumers purchase and to the reduction in the price gap between private-label and brand products.

There is no doubt that beyond the price advantage, private-label products have gained ground thanks to the growing perception among consumers that they are equal to brand products in terms of quality. The dominant category among private-label products remains food, accounting for 66 percent.