PMLA: Strong partnerships more important than ever during pandemic
The pandemic is fundamentally changing the private label partnership. That’s the conclusion of a special industry panel of retailers and manufacturers conducted during PLMA’s virtual Annual Roundtable Conference held earlier this month.
The panelists agreed that the Covid-19 crisis has pushed the need to work even more closely together. The time of tendering and short in-and-out contracts doesn’t work anymore, The only way to drive growth, be an innovation pioneer, stay efficient and offer consumers the best products is through mutual, open partnerships. The panel, moderated by industry consultant Edgar Elzerman, said the best way to achieve success in private label is through long term collaboration.
Another Roundtable presentation brought good news for private label. Maria Bogdanova of Euromonitor said the research company expects that private label market share will continue to grow even in less consolidated retail markets, driven by the severe economic crisis and the fact that many consumers were forced to by retailer brands during the hoarding period last year and found them better than expected.
Ana Cristina Amaral from Portuguese retailer Sonae told the attendees that the company’s strategy on private label is built around three pillars: quality, price and innovation. The retailer works with 500 suppliers and one in three products sold in their stores is an own brand. The company believes its strength lies in the quality of its private label products.
Source: PMLA