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Where Is Russia on the Timeline to a Thriving Private Label Industry?

Posted By: SGK March 18, 2013

A few key things have to happen for private label or store-brand packaged goods to become viable in a country or region.

  • The private brand – or the retailer itself – has to develop enough cachet to get over the “trust barrier.” In the U.S., Target is a great example of a retailer whose brand has been curated into something greater – trusted and aspirational. This took many years and a sophisticated marketing effort, because Americans traditionally have bonded with national brands that unite the huge geographical sweep of that country; the retailer’s job was to offer a wide variety of these brands. In the smaller, more traditional U.K., by contrast, shoppers have always bonded with the local retailer itself – on the basis of its smart selection; this made “own brands” an easier extension.
  • The retailer has to become adept at brand development for actual products, and at brand deployment, such as sourcing merchandise, coordinating supply chain logistics and managing artwork and packaging. These aren’t easy.

Against this backdrop, an article in CreativeMatch.com by Hans Muysson, a Schawk, Inc. Vice President of Product Development, is intriguing. In “Is Russia Ripe For Private Label Revolution?” he explains exactly where Russia stands on the timeline toward widespread private label. It’s an excellent “case study” for any marketer who's interested Russia, private label and brand development.