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MarketingPower

Private Label in Russia: Tradition Trumps Innovation – For Now

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Published 3/7/2013


Author: Hans Muysson

Hans MuyssonHans Muysson is Vice President, Product Development at Schawk, Inc. a leading provider of brand development and deployment services, enabling companies of all sizes to connect their brands with consumers. Hans has 25+ years of management experience in the design industry. He has been active in virtually all product categories and in most European countries for global brands and local heroes.

Summary

Private label products don’t qualify as an emerging market in most Western countries today – they’ve been a staple of the U.K. for decades and in the U.S. and continental Europe for at least 20 years. In fact, brands in those regions now face the challenges of a mature private label market: how to develop products that aren’t simply viable lower-priced alternatives but are category-definers in their own right. Russia, on the other hand, would appear to be ripe for a private label boom. The trouble is, systemic issues make it a tough process to enact. But that’s not stopping Russian and Western retailers from trying.


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