The own brand products offered by supermarkets and the so-called discounters are in their quarter of an hour.
With an average price close to 30% less than commercial brand products, their demand has increased among Colombian families, who today are in economic uncertainty due to high inflation and devaluation that increases the price of imported goods.
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A study done by Kantar Worldpanel provides data on the behavior of these products in the basket of consumption of Colombians.
María José Cruz, Associate Manager Client Management of this firm, recalled that the climate of concern for the economy has generated a contraction in the Consumer Confidence Index, as outlined by Fedesarrollo, which has an impact on food and product spending household basics.
“Households must pay more for less volume. This is how own brands play an important role and position themselves as a great ally of Colombian households in this scenario where price is a determining factor when making purchasing decisions,» said the expert.
According to the study, own brands reach 95% of households on a monthly basis, which corresponds to 5 points more than pre-pandemic levels.
For its part, last year spending on own brands grew by 20%, double that of trademarks. This, he added, «despite the fact that in both cases the purchase volume must be punished by an increase in prices.»
«This growth of own brands is expected in a market with a social population where more than 70% correspond to medium-low socioeconomic levels and, together with an uncertain future and increasingly higher prices of basic products, it is necessary have options for formats and disbursements that are affordable for households”, corresponding.
According to the study, own brands reach 95% of households on a monthly basis, which corresponds to 5 points more than pre-pandemic levels.
Cruz stressed that «although it is true, the price increase has occurred at a general level for commercial and own brands, the average price difference between them is approximately 30%.»
Own brands have concentrated mainly on products that have to do with the food and home care. However, in line with price increases, dairy and fresh products have been more dynamic in reaching consumers. “Within this world of own brands, not only the discounters stand out, but even the own brands of the retailers where the direct comparison at the point of sale is much more evident”, he said.
And although the expansion strategy of these brands was born aimed at the upper strata, today its development occurs mainly in the lower strata, and even level 1 manages to boost the volume purchased while the rest of the market punishes the volume for the High prices.
Consumers have raised the level of purchase of own brands.
Rodrigo Sepúlveda / Archive EL TIEMPO
In the Atlantic area, with a high percentage of the population at low levels, it is relevant and even an attractive region for the expansion process of the discountCruz said.
With this panorama, precisely the expert, commercial brands have the possibility of growing in other purchase channels such as, for example, in stores and minimarkets where the strategies fall on those products of the smallest formats that imply lower disbursements for the solution of a tight budget.
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