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Güzellik<br />
<strong>Beauty</strong><br />
91<br />
How do you evaluate the development of private label<br />
products and the private sector, can you give information<br />
about the current state of the sector?<br />
We have companies that produce a wide range of products<br />
from food to cosmetics, personal care products to<br />
cleaning products, and the private label sector continues<br />
to grow every year with double digit growth figures.<br />
The increase in the confidence of the consumers in private<br />
label products and the increase in the quality perception<br />
bring our sector to the levels that it deserves. In the last<br />
few years, increase of the discount stores which are main<br />
sales point of private label products such as BİM, A101<br />
and ŞOK their number of stores throughout <strong>Turkey</strong> gave<br />
impetus to the growth of the sector. In addition to the<br />
increase in the number of turnover and stores of discount<br />
markets, the turnover of Private Label products increases<br />
with successful<br />
operations of<br />
national chains<br />
such as Migros,<br />
Metro and<br />
CarrefourSA.<br />
When we look<br />
at Nielsen’s<br />
data, the first<br />
factor is that the<br />
price is more<br />
economical<br />
for the consumer to prefer a private label product.<br />
The number of people who think that the quality of the<br />
money they pay is also increasing. In terms of quality, our<br />
companies are really good points. Each of the PL products<br />
is produced in accordance with the standards by the<br />
biggest companies of the sector. Moreover, the markets<br />
are also supervising the manufacturers very strictly.<br />
We can say that the weight of private label products will<br />
gradually increase in the retail sector. Trends show this.<br />
At the moment, the most important choice is the price,<br />
even though the brand loyalty, brand loyalty, which is<br />
the leader in the category of PL brands, the number will<br />
increase in the coming years.<br />
growth area in the private label market in <strong>Turkey</strong>, it is<br />
still very large compared with the EU. We are a promising<br />
sector. The share of private-brand products in the<br />
turnover of the total supermarket market is between<br />
18 percent and 42 percent in Europe, with an average of<br />
31.5 percent. In <strong>Turkey</strong>, this ratio (excluding alcohol and<br />
tobacco) has reached 19.9 percent.<br />
Therefore, there is a significant growth opportunity in this<br />
area. According to the latest figures, 1 Lira of 5 Lira is<br />
spent for the private brand product. In Europe, this figure<br />
is one-third’…<br />
We are at the very beginning of the road but we are<br />
growing faster than Europe. Considering the growth<br />
figures and the growth rate of our sector, we estimate<br />
that we will be able to catch the European average in the<br />
next 5 years.<br />
Private Label is growing day by day. How was the year<br />
2018, what are your predictions for <strong>2019</strong> and beyond?<br />
In 2017, the turnover of private label products (Private<br />
Label), which had a turnover of TL 30 billion in 2017,<br />
reached 50 billion TL in 2018 with a record-breaking of<br />
around 70 percent. There is an increased demand for<br />
private goods in the face of high inflation and <strong>Turkey</strong>’s<br />
economic difficulties. Consumer turned to marketbranded<br />
products, which are almost 50 percent cheaper<br />
than brand A. The increase in inflation caused a significant<br />
change in the consumer’s shopping habits last year.<br />
One of the factors that influenced the approach of private<br />
label products to 70 billion TL with an increase of 70<br />
percent in 2018 was the<br />
fact that consumers<br />
looked at the price more<br />
than ever when they were<br />
shopping. According<br />
to Nielsen data, last<br />
year’s consumer price<br />
awareness increased<br />
from 69 percent to 91<br />
percent. So now there<br />
is a mass of customers<br />
who do not buy a product<br />
without questioning the<br />
price. We can interpret this as an important development<br />
for the retail sector in general.<br />
The first three private label product groups in <strong>Turkey</strong><br />
were chosen the most in the last year; dairy products,<br />
paper products and oils, respectively, followed by nonalcoholic<br />
beverages and cleaning products. In 2018, the<br />
Private Consumption Packaged Goods Market (PHTÜ)<br />
showed a growth rate above the turnover growth of 18<br />
percent.<br />
In <strong>2019</strong>, we anticipate that the growth in the private label<br />
sector will continue and increase by at least 50 percent.<br />
We have manufacturers which can move fast in the face of<br />
dynamic, changing trends and are not forced to meet the<br />
consumer with innovative products. Export in <strong>Turkey</strong> are in<br />
a very advantageous position. First, we are geographically<br />
close to Europe. Our manufacturers have the capability<br />
and sufficiency to produce in European standards. On<br />
the other hand, we are close to potential markets such<br />
as Middle East, Russia and Turkic Republics, North and<br />
Central Africa, and being the biggest producer in this<br />
region, brings great opportunities in export for us.<br />
We expect <strong>Turkey</strong>’s private label sector will grow more<br />
and continue increasing in the coming years and achieve<br />
a strong position in exports. As PLAT Association, we will<br />
continue to stand by our companies in this process and<br />
lead the sector.
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