The growth of the number of products with own brands is going at full speed in the country and in the region. Hence, it can be said that it is going to a cheetah, a cat capable of traveling at 115 kilometers per hour.
In Ecuador two chains in recent years have increased by 46% the articles with white marks, the Favorite Corporation (which manages Megamaxi, Aki, etc.) and Associated Industrial Stores (TIA).
The corporate manager of the Favorita Corporation, Rubén Salazar, told Diario EXPRESO that they have three main brands: Supermaxi, Aki and La Original, which are within the food, personal hygiene and household cleaning segments.
Salazar stressed that the preference for own brand year after year grows on average by 7%, in recent times.
To have a better idea of how these types of products are gaining market, TIA indicated that the growth in the preference increased 13.17% in 2017 compared to 2016.
The strategy is to ally with suppliers that maintain high quality standards and strictly comply with legal records, INEN standards and technical labeling regulations. In the case of TIA, last year it managed to offer 56 new references in high turnover products and 271 references in technology articles and seasons.
The two chains consider that good quality and attractive prices are the keys to the success they have, since they give a saving in total spending to the final customer between 15% and 20%.
Just to give an example a bottle of olive oil, extra virgin, Supermaxi brand costs $ 9.99. While a premium brand, $ 13.12.
Diario EXPRESO toured several self-service stores, where it confirmed how the presence of own brands on hangers has increased. Patricia Anastacio, client, said that she prefers them because of the good quality and because it allows her to save a few cents. She thinks that in the other brands she pays for her image, more than for his content and since the money for these days is not enough, she has to make intelligent or planned purchases.
But what happens in Ecuador is also replicated in the rest of the region. Own brands account for 3.6% of the share in Latin American value, silently gaining share year after year.
They reach their record in Colombia with 15% of the market, where they earn more than 2 market points each year since 2015. Central America (8%), Chile (6%) and Argentina (5%) follow. Premium brands lose 2 market points in the last 3 years, according to the company Kantar Worldpanel.
For Virginia Garavaglia, Marketing Director of Kantar Worldpanel in Latin America, the Latino buyer changes their brand choice, giving more space to own brands and economic brands, in order to control their budget. (I)