Conad has big plans for its private labels

The Italian retailer to launch a new brand dedicated to distinct and valuable segments: organic, vegetarian and vegan, ecological and fair trade
Conad has big plans for its private labels

With a turnover of 2.8 billion euro,  the private label for Conad is a fundamental component of the retailer’s overall revenue, attested to be 12.2 billion. An unequivocally positive balance sheet, driven by performances registered in some commodity sectors, such as grocery, which is up 9.1%, and fresh produce which increased by 10 points. Frozen foods and fruit and vegetables are also progressing.

ITALIAN OFFER – The “Italianness” of the offer, together with the focus on the emerging innovation and consumption, will be the main drivers following private labels during 2016, looking to improve and consolidate the client’s evaluation whilst at the same time attracting new targets.

A NEW LINE OF ORGANIC PRODUCTS – Conad’s brands, from the traditional red label to Sapori&Dintorni, to the organic brand, have shown strong growth trends both in shares and in turnover, and the group has a much more important project in the works this year. “We have a much more important project in the works this year”, comments Francesco Avanzini, Conad’s commercial director, “with a brand dedicated to distinct and valuable segments; organic, vegetarian and vegan, ecological and fair trade. It’s an investment on what will be the distribution brand in the next ten years; starting to develop products that will be suitable for our children, in a sustainable way. And, obviously, we expect financial results that will be able to sustain the store.”

PHYSICAL STORES – In the meantime, the group has taken part to the strategic alliance Core, together with Colruyt, Coop Suisse and Rewe Group. Conad’s future also depends on internationalization strategies, by means of both physical stores and its presence in the main online platforms. Choices will obviously depend on the specific characteristics of the various markets, each one having its own specificity and development dynamics. For instance, in China, like in other Asian countries, during the process of opening a physical store, there are numerous obstacles of logistical and of a bureaucratic nature to deal with.

ONLINE EXPORTS – Far from it, digital platforms, such as Alibaba and Aliexpress, guarantee efficacy and convenience by directly addressing a consumer base that, considering the high mobility rate towards the old continent, show that more of them are already acquainted with Western products. And, by no means negligible, asks to be able to buy them without any difference compared to those sold in the markets of origin.

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