The development of private labels is experiencing a movement of legitimization and recognition in the Brazilian retail market by consumers. According to Nielsen data from 2022, products in this category are already present in 40% of households in the country. This approval represents an important expansion of the sector in recent years, revealing new business opportunities, possibility of revenue increase, in addition to customer loyalty through the creation of an exclusive product line
The food sector is responsible for concentrating the majority of private label brands sold in Brazil, that has a robust manufacturing park for food production. However, the exploration of the concept ofprivate labelcan be extended to other segments, like pharmacy and personal hygiene
Recently, private label items created bypharmacy chainssurpassed the growth of the supply of this type of product in the food sector. Pet shop, beauty and construction materials make up the other strategic areas that showed solid and sustainable growth in the market ofprivate labelBrazilian
The evolution of this business model will be one of the main topics of PL Connection, the biggest event ofprivate labelfrom Latin America, what will happen between September 17 and 19, 2024, at Expo Center Norte, in São Paulo
Private label in expansion
Private labels are gaining more relevance in Brazil and attracting the retail sector, that sees a chance to increase the product offering and revenue. This is because the segment still represents only 2% of the retail sector in the country, which allows for numerous possibilities for expansion
In Latin America, the presence of private labels in business is about 10%, while globally this rate is 23%. In some countries of theEurope, the commercialization of private label productsrepresents more than 50% of the supply on the shelves, what corroborates the growth expectations in Brazil. These items are capable of creating a communication link that brings the brand closer to the consumer, and where the reputation of the business serves to legitimize the origin of the product
However, the offer of items classified as private label requires some care, such as getting to know the suppliers deeply through their performance history in the market. Monitoring the quality level with technical and laboratory tests represents another step in the product designprivate labelbefore its commercialization
