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Manufacture of products under its own brand. Private labels of retail chains. Who to entrust the creation of packaging for private labels

Own trade mark (private label, store brand) is assigned to goods produced by the manufacturer on the order of the retail chain, which promotes them under its own trade mark.

The history of private labels (PL) in our country is 10 years old - in 2001, for the first time in Russia, private label goods appeared in Ramstor supermarkets. By the end of the same year trading house"Perekrestok" has released several items under the brand name "Perekryostok". Then this trend was supported by "Dixie", "Lenta", "Pyaterochka", "Kopeyka" and released on Russian market in 2002 "Auchan".

Initially, the introduction of private labels was carried out by retailers rather haphazardly. The networks tried to cover a wide variety of product categories with private labels, both in the food and non-food segments. However, it quickly became clear that private labels bring the greatest benefit in the group of high-volume FMCG products. As a result, there has been a steady trend to introduce their own trade marks in the categories of food that forms the basis of the consumer basket, in seasonal goods, as well as in that component assortment matrix, which has the least brand dependence. And individual successes were not long in coming. So, for example, in Perekrestok, the total number of items sold under its own trademarks exceeds 1000 items (this is Perekrestok and common for X5 chains Retail Group stamps "Red Price" and "Ice Age"). "Lenta" is also constantly expanding the assortment line of the private label of the same name and the brand of the low price category "365". "Auchan", in addition to products on pata, offers customers private brands "Fortress", "Lakomo", "Don Gusto", etc.

The recent financial crisis and the associated hunt for low prices has led to a surge in interest in private labels from retailers and consumers. And when the economic situation stabilized, analysts noted that the majority of buyers remained loyal to their own brands. retail chains. And today networks use private labels not only to increase profits, but also to strengthen customer loyalty. And this, according to analysts, is not a temporary trend.

See: S. Vakhrusheva. Situation on the market // Practice of trade. 2011. No. 7.

In retail, the process of creating and developing a retailer's own brands can be referred to as innovation. Innovation should be defined as a new benefit. And the benefits must be mutual. For the company, profit is profit, its guarantee successful development. This applies to both manufacturers and retailers. trade enterprises. For the consumer, innovation is a value expressed in solutions that offer not just a product, but new benefits.

The main reason for the emergence of a private label is the concentration of trade and the growth of networks.

The relevance of the production and sale of goods under their own brands of a retail trade enterprise is due to the fact that chains want to earn more and at the same time have low, more attractive prices for consumers. If the store sells only well-known brands of the manufacturer, sooner or later it has to either negotiate lower prices with its supplier or reduce its own margin, which has a certain limit. To increase profits, it is advisable for a retail trade enterprise to produce goods under its own brand. Since the entire volume of such products is sold through the customer's network, the manufacturer does not need to widely advertise the product and distribute it. Because of this, the purchase and, accordingly, the final price of private label goods is lower than the cost of goods produced by manufacturers under their own trademarks.

The effect of savings on the purchase price can be (depending on the category of goods and the terms of the transaction) 5-10% or more, which, of course, is attractive for a buyer who receives a quality product at a lower price.

If we consider world practice, then the share of sales of private label goods in percentage terms in America and Europe can reach the level of 30-40%, and according to forecasts in individual networks, it can be increased to 60-80%. Same European buyers want to see everything more items private label in the chains where they are used to shopping. If earlier the order for the production of private label products concerned the low-segment, today it is increasingly possible to meet private label products in the middle-, as well as in the premium-segment.

Wal-Mart stores (the world's largest retail chain; an American company) have approximately 120,000 different items of goods. Of these, private label products are probably less than 10,000 items. This is a small percentage. They manufacture them in all Asian countries. Only in China it is 800 enterprises. Private label products are more popular in Europe than in the US. But today, one of Wal-Mart's goals is to increase the percentage of private label products.

This is a really important goal. Let me give you an example from the USA, where "Tide" is one of the most popular brands of washing powder, the manufacturer of which is the company "Procter and Gamble". And what does Wal-Mart do? Creates his own formula"Tide" and produces it in its production. This laundry detergent is no longer called "Tide", it's a Wal-Mart brand. This is where Wal-Mart's "same quality at a lower price" strategy comes into play. The reason they do this is to put pressure on brands to lower their prices. All branded goods manufacturers are at war with retailers. If Wal-Mart had the opportunity, it would only sell private labels. And all this because of the price premium, the margin. Retailers earn more money on private label than on branded goods.

See: Today, one of Wal-Mart's goals is to increase the percentage of private label products. Interview with Michaelol Bergdahl // RETAIL.RU. April 3, 2007. URL: retail.ru/news/20432/? sphrase_id=303481

The presence of own brands allows stores to:

- fully control the process of price formation;
- reduce the cost of promoting goods;
- offer customers under their own brand all products without exception, including vegetables and fruits.

Private label development goals:

- promotion of the brand on the market of goods;
- Increasing profitability by reducing purchase prices;
- increasing the competitiveness of the network;
- creating a tool to increase customer loyalty.

Competitive advantages of private label:

- The retailer selects manufacturers on the basis of experience and market analysis and guarantees consumers the quality of goods under their own brand.
- The manufacturer does not bear the cost of advertising campaign. Company retail creates the image of goods and guarantees their quality, and also promotes these products by in-store means - a special layout, information support, etc. This allows you to reduce the cost of a number of products under your own brand. In accordance with world practice, many private label products are cheaper than their absolute counterparts. According to ACNielsen research in 36 countries and 80 product categories, private label products are on average 31% cheaper than branded equivalent products. In Russia, discounts are not yet so significant, but they are and range from 5 to 25%.
- A retail trade enterprise has the opportunity to conclude contracts with manufacturers for the supply of products with unique properties.
- The presence of private label products facilitates consumer choice, especially in those product categories where products of low brand dependence are presented.

Private label social features:

- The retail network assumes responsibility to the buyer for the quality of goods under its own brand. The guarantor of quality is the great experience of the company's buyers in choosing suppliers, as well as the fact that the company's employees have special knowledge about food products. It can be said that in this case, the retail chain acts as an expert in the field of food and non-food consumer goods, offering the buyer its experience and knowledge.
- Private label suppliers often include small regional companies that produce high quality products from natural ingredients, but for a number of obvious reasons they cannot break into the capital market. For such suppliers, this is a serious "breakthrough", since cooperation ensures a stable production load.

When determining product groups, the retailer proceeds from the following selection criteria:

1) high turnover;
2) everyday demand (goods that attract the consumer to the store more than twice a week and have, as a rule, limited expiration dates - perishable goods, meat and dairy gastronomy, etc.);
3) socially significant goods of stable demand, which form the basis of the consumer basket of the population - cereals, tea, sugar, etc.;
4) high-margin goods;
5) goods with unique consumer characteristics;
6) novelties promising from a marketing point of view.

Goods under their own brand are beneficial to everyone: both manufacturers, who get the opportunity for stable sales without promotion costs, and buyers who purchase goods of guaranteed quality at a lower price, and retail chains, since the purchase prices for such products are lower than for brands in which already invested heavily in advertising.

Manufacturers involved in the implementation of the private label project also note its prospects. Little-known regional companies that produce high quality products can break into the capital market and ensure a stable load of their own production.

The release of goods under private labels is of interest not only to chains, but also to manufacturers. The goals of manufacturers in working with private labels look like this: the opportunity to be represented in large retail chains, obtaining additional sales volumes and, as a result, capacity utilization, and assortment expansion.

All retailers agree that the combination of quality, reliability and service is a key issue when choosing a supplier of private label products.

It is important that the quality meets retail requirements and remains high throughout the entire period of cooperation. And the price is also important: the quality must match it. The supplier's reputation also plays a significant role. It is also important that the supplier has the opportunity to fulfill the order volume that retailers need, and that there are no interruptions in the supply of goods.

Unfortunately, small producers do not always have the opportunity to produce private labels due to various difficulties.

The larger the network, the more difficult it is to saturate it with goods. Therefore, large networks often choose large suppliers for private labels: there is a guarantee that at least they will not let you down with the volume, and there is experience in working together (the manufacturer knows the requirements of the network - the network knows that he can be trusted).

Speaking about the choice of private label suppliers, one should especially mention what they are afraid of working with a private label: suppliers are afraid of a short-term contract. What if a competitor offers a lower price - and the products of the original supplier will remain unclaimed, perhaps the production lines reconfigured for a specific private label product will stop, and the prepared packaging will turn out to be unnecessary?

None of the buyers is interested in a short-term contract if cooperation with the manufacturer suits. Who wants to renegotiate contracts once again, draw up a lot of paperwork, build business processes? The change of supplier is not due to the fact that the customer suddenly wanted it, but, for example, because the control samples were good, and then complaints from customers began to come in about the product - it became tasteless.

Work on the creation of STM should be close, bilateral.

See: S. Vakhrusheva. "Choosing a Private Label Supplier" // Practice of Trade. 2011. No. 7.

Despite the profitability of private labels, national label manufacturers are very concerned about their growth in popularity and strength. Some analysts predict that private label products will drive out all competitors except largest manufacturers national brands. The following reasons can be mentioned: the growing quality of private label products, the emergence of private labels in premium segments, the penetration into new product categories (cosmetics, soft drinks, clothing, beer).

In the past, consumers ranked different brands in a brand ladder, with their favorite brand at the top and the rest ranked in descending order of preference. Today there are signs that brand parity is coming - equal recognition of different brands. The firm preference for a particular brand is being replaced by a choice of a product from several recognized brands, depending on which of them is currently discounted.

The growing power of private labels is by no means the only factor influencing the weakening of the positions of manufacturers' brands. Consumers have become more price sensitive. Due to the reproduction of the qualities of the best branded products by competing manufacturers and major retailers, they note a great deal of similarity between products under different brands. Coupons and special offers have taught an entire generation of consumers to shop primarily during sales periods. In addition, the reduction of advertising spending by many manufacturers to 30% of the promotional budget has weakened their brand equity, and the endless expansion of brand families and boundaries has robbed them of identity.

According to experts of the ZLO Federal Purchasing Union Sistema TZS, in the short term, sales of goods under retailers' own brands in the Russian market will grow by 50-70%. Such a high growth rate is associated with an unstable economic situation, forcing buyers to save on brands. Retailers are starting to work with private label products to get additional margins, and manufacturers are interested in opening new production facilities.

Competition between retail chains in terms of pricing policy is becoming more intense. In this regard, more and more players in the market are paying attention to working with goods under their own brands.

The vast majority of retail chains offer customers private labels, the quality of which is comparable or superior to the characteristics of branded products. The absence of marketing budgets and a ready-made distribution system reduce the cost of goods by 25-30%.

Federal Purchasing Union CJSC "System "TZS" in the framework of the implementation strategic objectives for the development of the company in 2012 plans to increase by 80-90% the turnover of goods produced under its own trademarks. Growth rates exceeding the market average will be achieved due to increased sales volumes, an increase in the number of chains participating in the project, as well as by expanding the product range.

See: FZS is authorized to declare: The private label market will grow by 70% // RETAIL.RU. December 29, 2011. URL: retail.ru/news/60387/?sphrase_id=259793

However, despite the tangible benefits, using private labels has a number of disadvantages. First, in some cases, a lot of money has to be invested in product development, creating a favorable image and informing consumers; secondly, the problem of product quality control is exacerbated, the solution of which also requires significant additional costs; thirdly, additional training of sales workers in methods of selling private labels, less well-known than the brands of manufacturers, is necessary.

In turn, large manufacturers with strong trademarks began to use numerous techniques to counter private labels. Manufacturers of national brands can counter private brands through a range of targeted activities.

- Manufacturers of nationwide brands cut costs and cut prices to counter retailers' own brands.
- Manufacturers are constantly improving the characteristics of their products, such as quality level, functional properties, external design, in order to attract new users and intensify consumption.
- Manufacturers of national brands can audit their brand portfolio in order to focus on the strongest brands in order to counter store brands. They may also enter into their product range brands-"fighters" (brand fighters), opposing their own brands in the segment "acceptable quality - low price".

Companies that own national brands can sell some of their products to the distribution network by entering into an agreement that it will be sold under a private label. However, not everyone can become a partner of a large retail chain. All chain stores impose strict requirements on manufacturers. The main criteria for choosing suppliers are: product quality, the company's production capacity, its financial stability and time on the market. The most important criterion for selecting partners for networks is the quality of goods. No one wants to embarrass himself in front of buyers by giving his name to a low-grade product. Therefore, any potential partner of a retail company must prove that there will be no problems with quality.

Goods quality assurance for a retailer can be independent expertise or the fame of a manufacturer that values its image and has its own quality laboratories. The product must comply with the regulatory and technical documentation for a given product group. In addition, the manufacturer must not only initially declare high quality, but also maintain it constantly. If an independent examination shows its deterioration, as a rule, one has to part with such a manufacturer.

Another important issue is the production capacity of the company. The release of goods under their own brands is started only by large networks with dozens of stores. Accordingly, the manufacturing partner must be able to fulfill a large order. As a rule, retail trade enterprises choose as partners the producers occupying the second-third or fourth place in their market segment. They do not work with a leading enterprise for the reason that it is successful in itself and at some point it will face a dilemma: either create its own brands or work for retailers. And such a company itself, if it has powerful marketing, good brand capital, will not cooperate with them.

Very often, negotiations between retailers and manufacturers come to a standstill during the discussion of the purchase price of the goods. The price should arouse interest among buyers, but allow both retailers and manufacturers to have their own profit.

Leaders in the development of private labels in Russia have been identified

Magnit, X5 Retail Group, Auchan, Metro Cash&Carry, Lenta, Dixy and Maria-Ra became leaders in the development of their own brands according to INFOLine Private Label Profi no results for 2010 and the first half of the year 2011

For the first time, the INFOLine Agency, especially for the forum "Private Trademark - 2012", organized by the Imperia KVK, has prepared a rating of Russian FMCG chains for the development of private labels, based on the share of private labels in the chains' revenue in 2010 and 2011. (in %), shares of private labels in the total number of SKUs in 2010 and 2011 (in %), total sales of private label goods (in rubles), total number of private label SKUs (in pieces) and a number of other indicators.

See: Private label leaders // RETAIL.RU. November 29, 2011. URL: retail.ru /news/59591/?sphrase_id=259793

According to market participants, amendments to the Code of Administrative Offenses (CAO), adopted at the end of December 2010, will help increase private label sales. The amendments provide for significant penalties for violation of contractual relations between suppliers and retail chains. Such accusations can cost the company 5 million rubles. Therefore, federal networks today are significantly reducing their assortment, and products under private labels are being introduced into the vacant places. The production of goods under private label allows the network to combine the roles of supplier and trader, eliminating the possibility of claims for unfair contractual practices. According to the practice established in Russia, private labels are positioned by many chains in the lowest price category. Just in the one where, during negotiations with the supplier, the retailer is interested in the lowest purchase price in order to list the product with a very modest margin and attract the consumer with a price. Now the tough negotiating position of networks by some suppliers can be interpreted as imposing conditions. Therefore, it is much easier for a retailer not to purchase a product, but to produce it himself, placing orders for contract manufacturing, developing packaging.

According to forecasts, by 2012 the share of private labels in the turnover of FMCG retail trade in Russia will be at least 3~3.2%.

The total volume of private label sales in the world exceeded 380 billion euros. According to INFOLine, the share of private labels in the global trade turnover in 2010 was 22%, and by 2020 it may increase to 30%.

The private label direction is being developed not only by federal retail chains. Small regional retailers are also actively promoting products under their own brands. There is also a common umbrella brand- STM "Soyuznaya Marka", which was launched in May 2009 by the Union of Independent Chains of Russia (Union NSR unites 44 regional grocery chains in 46 regions, more than 1.3 thousand retail outlets). The Federal Purchasing Union (CJSC Sistema TZS) created by the NSR Union produces over 100 types of goods, the sales volume of which exceeded 400 litas rubles during the year and a half of the project development.

Products commissioned by chains can be divided into two categories: goods of a certain brand and the so-called goods of the first price. For example, the Auchan network offers goods of the first price: only the name of the product (sugar, tea, soap or cotton buds) is indicated on the package with a yellow-green stripe. "Auchan" also offers its own brands: "Lakomo" (dairy products), "Bed of luck" (canned food), "Boncafe" (coffee), "Don Gusto" (cereals and pasta), "Fortress" (alcoholic drinks), CleanOK (cleaning products).

See: N. Novopashina. The desire to reduce the cost of the product damage to quality hinders the development of private label in Russia // However [Electron, version of the journal]. March 30, 2011. URL: odnako.org/magazine/material/show_9897/

For a long time we refused to manufacture products under private label. This was largely due to the positioning of the chain and the specifics of the assortment: in Russia, much of what we offered to customers could not be produced, there were no companies capable of guaranteeing high and stable quality, and the modest volume of sales compared to the market made working under a private label economically unprofitable, because the price was too high.

Nevertheless, positive changes have begun: worthy manufacturers have appeared in Russia, we have concluded contracts for the production of products under a private label with a number of foreign companies and the number of retail outlets has increased significantly. Today, Azbuka Vkusa's assortment includes five trademarks: Prosto Azbuka, Our Farm, Selection, Already Done and Almost Done! The last two brands are produced in our own kitchen factory.

The main requirements for our private labels are product quality and supply stability. The quality is monitored by the manufacturers themselves and representatives of our quality department (they check before starting cooperation and then periodically go to production). After receiving the goods, we check them in our own quality laboratory, where physical, chemical and microbiological analyzes are carried out. Goods that successfully pass laboratory testing receive the Q-lab label, confirming high quality products.

The price of private label products is not always lower. We strive to offer the best value for money. The price advantage, as a rule, is explained by the fact that the number of intermediaries between the retailer and the manufacturer is reduced. There is no need to include promotional costs in the price: products are promoted in outlets with POS materials and better display on the shelf.

Our stores work with 90 regional manufacturers. Among them as large companies, which produce a whole line of products for us, and very small ones, which make just one product for us.

Producers agree to work under our trademark, as this is a real chance for them to get sales in Moscow. The Moscow sales market is a dream, and getting into large chain stores is not so easy. We communicate with many manufacturers, some of them have worked or are working with chain stores and are not always satisfied with this cooperation. It's no secret that chain stores have a rather strict system of fines, bonuses, "entrance" tickets. We don't have all that. All that we require from the manufacturer is natural products without chemicals. All other problems (transportation, storage, sale, write-offs) are completely taken care of by us.

The price of products depends on the distribution network. Specialty stores like ours tend to have higher requirements. But if they are honestly executed, then the selling price is also higher. Specialized stores do not participate in the food wars of large retail chains, they do not force manufacturers to reduce the cost of production for the sake of a tangible price reduction. close-up retail chains, counting on the mass consumer, as a rule, do not care about the capabilities of the manufacturer and product quality. The main thing is the price at which this or that product will be sold.

Hope Paderina

Purchasing Director of own brand "Auchan"

How to create your own brand "Auchan":

Created technical task with the requirements for the product: what technology and under what conditions it should be produced, what taste qualities it should have, what its packaging should be, and most importantly, at what price Auchan wants to offer it to its customers.

On the basis of the terms of reference, a tender is held, in which all interested manufacturers can take part. Any company that offers the highest quality product at the most reasonable price can win the tender. favorable price, which has the appropriate technology, personnel and documentation.

At the tender stage, the Auchan quality department conducts a blind tasting. Questionnaires give marks for the quality and taste characteristics of the samples. Data processed special program, and the best products are selected based on the results. During the tender and after it, the conditions of production are monitored by independent auditors who monitor all technological processes production - from the composition of raw materials to packaging.

Products are tested in an independent laboratory for compliance with state and international standards.

Creation of packaging design for the brand "Our family". The main criteria are recognition and memorization.

Signing an agreement with an applicant who meets all the requirements.

The trend to create a private label is actively developing in food and non-food trade, and often such products provide the main share in the turnover of companies. Networks "220 volts", "Yulmart", DNS tend to sell something of their own, even if it will be accessories. The brightest price tags and the most big discounts, as a rule, stand precisely for goods of their own brand (PL).

in the electronics business and household appliances own brand, or private label, carries a heavy burden. For many stores, this is the only chance to survive and cope with the competition. Why is this happening? The fact is that most stores tend to trade in the so-called A-brands such as Sony, Panasonic, Canon, Bosch, etc., but they can only be interacted with through vendors that receive the main profit. The retailer gets only a small percentage. One more moment - big brands trade all without exception, which creates fierce competition between sellers. There is only one way out - private label, capable of providing a unique product offer, plus the entire margin goes to the store. Another important advantage of launching your own label for a retailer is the opportunity to become a vendor yourself and sell products on the shelves of competing chains.

The 220 Volt chain, for example, sells goods under its own Hammer brand. small expendable materials and large appliances such as a grinder or a Chinese-made building hair dryer with their own labeling are sold at a bargain price and attract a buyer. Another major retailer, Ulmart, is developing the brand of Zifro TVs and monitors, which is 1.5 times cheaper than products from well-known manufacturers. The difference for the buyer is significant, while the seller, meanwhile, receives the entire profit - for both, the benefit is obvious. Unlike 220 Volt and Yulmart, whose private labels are not well known, the electronics retail network DNS sells smartphones directly under the brand of the store, thereby stimulating additional consumer loyalty.

The online store "Photosklad" tested this scheme on itself, for a year now we have been developing our own brand of small electronics and accessories Prolike (smart watches, fitness bracelets, optics, batteries, light filters, etc.). The product matrix is very wide, in our opinion, it should be so - in almost any section of the store besides famous brands and Chinese analogues, private label goods should be present, which will allow both the buyer to get a greater choice, and the seller to present the goods in a quality manner. From our own experience, we have seen that it is fundamentally easier to work with private label products. Private label provides independence from the manufacturer in terms of marketing: you can, for example, organize promotions and sales, and just play something. This is beneficial for both the store and the customer and plays an important role in building the retailer's image.

If you look at the Russian market of electronics and technology in general, now it is the stores that are creating a platform for domestic production. Therefore, the development of SMT in this segment is important not only for the companies themselves, but also for the country's economy as a whole. Today, Prolike accounts for about 3% of Fotosklad's sales. If the situation on the market changes in favor of domestic retailers, and the state cancels preferences for foreign online stores operating in this industry, we will have the opportunity to increase the share of private label sales to 20-30%. In this case, we can talk about launching our own production in Russia, which means the development of the domestic industry.

Creation own brands is still not very common in Russia, but they were met, one way or another, by everyone. Most often they come across in hypermarkets and supermarkets, on the shelves with familiar brands. Only the price differs: the cost of goods produced under a private label, as a rule, is 10-15% lower than that of analogues. This does not mean that the product is of poorer quality, the manufacturer simply has the opportunity to save on advertising by promoting products directly at points of sale, which significantly reduces the final price. In addition, private labels are created specifically for a specific audience. trading platform, therefore, manufacturing retailers can respond flexibly and quickly to their requests, which contributes to an increase in demand.

The creation of similar brands is a requirement modern market. With their help, retailers gain control over a part of the product, can attract customers and improve the image of the store. How does this happen? Let's find out.

The impact of private labels on store image

In Russia, as mentioned above, private labels are still not very popular. Changes in commodity market relations originate in Europe and America, where they "settle down" and become commonplace, and only then attract the attention of domestic entrepreneurs. So, abroad the norm is considered to be 30-40% of the share of own goods in the assortment of the supermarket. In turnover, they occupy a third, in marginality, two thirds, and a retailer cannot exist without these products.

Domestic retailers are still using simple copying, offering goods at a low price from popular categories. In foreign practice, attracting buyers with additional benefits is actively developing: for example, the production of organic products that compare favorably in their properties with branded competitors. In Russia, this is not yet the case, but everything is striving for it.

Today, the largest retailers produce almost all goods in the food and non-food segments under their own brand: alcohol, dishes, pet food, dairy products, and much more at an average and low price. As a rule, own products are externally similar to branded counterparts, which is logical, since the retailer needs to build on something.

The name of the manufacturer must appear in the name of the product, the logo is put. On this, the entire network “leaves”: a high-quality and cheaper product compared to analogues creates positive image the entire company.

Manufacture of goods under own brand

Retailers rarely have the opportunity to organize own production- all the more, we are talking about a very wide range of products from all categories, from household chemicals to food. The purchase of private label goods is carried out from third-party manufacturers interested in creating their own trademarks and having relevant experience. Certification for compliance with TU and GOSTs takes place in independent licensed laboratories.

Third-party companies also carry out the production of packaging for goods and the development of design, which is worth talking about separately.

Features of creating packaging for your own brand

There are two key points in this matter: packaging should attract attention, but at the same time not be fabulously expensive. Therefore, great attention is paid to thinking through the design.

The development of packaging and the release of products on the shelves are carried out in stages:

Competitive products and their packaging design are analyzed, after which ideas are collected and proposed.
The design is developed - by our own design studio, branding agency or freelance specialists. Emphasis is placed on the presence of the name of the network in the name of the product, as well as on a design consistent in a single style: this way, buyers will be able to immediately identify private labels.
A trial batch is ordered and tested. If the products are successful, the batch increases and is included in the permanent assortment of the store.

STM or Private label- Own Trade Mark of the company, which, as a rule, operates in the retail segment and has an established distribution network. Production of private label products is transferred to a third party production company, allowing the private label owner to focus on marketing and sales. It is customary to assume that private labels are the destiny of large retail chains. But this is far from true. The main condition for private labels to be economically justified is the presence of a well-functioning retail distribution network, client base(wholesale or retail is not so important), capable of realizing the minimum contract lot.

Minimum contractual batch of cosmetic products - 100 kg of cream formulations, 300 kg of foaming products

The further development of your brand depends entirely on the promotion strategy you choose. As an example, starting work with private labels and placing an order at our production, you have the opportunity to set a lower price for these products or set them at the level of competitors by laying financial basis to form an advertising budget. Then, in the first case, you are able to implement a strategy of low prices and supplement your product range with your own line of inexpensive products. And in the second - to engage in full-fledged creation of a brand that meets your visions and expectations.

Our company has been developing and manufacturing products under its own trademarks and under contract manufacturing for 12 years. 2 research laboratories, highly qualified staff with many years of experience allow you to realize your ideas and be a reliable partner in the production of private label products within the framework of contract manufacturing. Contract manufacturing with us involves, in addition to direct manufacturing services, also, if necessary, preliminary development of a recipe, recommendations and selection of packaging, certification, assistance in carrying out marketing promotions(co-packing, 2 in 1, etc.).

What benefits does the STM Customer receive?

1. More income

Most of the profits of suppliers of goods become your profits. And the more significant part of the sales volume your private label products take, the greater this effect.

2. Growth of the company's status in the eyes of customers

A company that owns its own trademark significantly increases its credibility among customers and consumers.

3. You invest only in yourself and in your development

By promoting your own brand, you develop your business, not someone else's.

4. Own production and own products without investment in production

You receive products under your own brand and are exempted from serious and expensive investments in equipment, production facilities, personnel

5. Test pen

You would like to start your own production, but you are not sure about the result. Get started easily and quickly with us! We are your launch pad, which is ready to start implementing your production plans in 2 months.

When STM is inappropriate:

The volume of sales of goods is below the minimum contractual volumes
You are ready to immediately develop your own production (invest in equipment, space maintenance, personnel, etc.), you have pre-orders and therefore are confident in the success of this direction.