Real chief says own brand is the way ahead

l
uH'r
t
Brands
Do you buy store brands. (ones owned
by the chain store se*ing them)
when food shopping? Why?
lWhy not?
Reading
Read this article from the Financìol
Times andanswer the guestions.
,.lqV,*,6r.,,o*rrieglyg.
%
i'
Real chief says own brand is the way
ahead
by Gerrit Wiesmann in
Germany
Neuss,
Joèl Saveuse walks across the Real
hypermarket in northern Germany
s
in search of.those iittle biscuits,.
Moving from toys to the freezer
section, the 55-year_old, who runs
thecountry's biggest food retailer,
finds what he is looking for in
aisle 45. .This is my iavourite
.rs
'I ook. here's a simple picture of
Together
cent now.
by replacing its different in_housé
zo brands with a single orvn
brand
that links the retailer rvith a product
range. The aim is to raise in_house
brand sales frgl I 5 per cenr up
ro
25 per cent offood sales in trvò
to
zs three years'time. Mr Sav.ur"
ruy,
that customers get top quality flr
at Ieast I5 per cent less-thanihey
would pay for a name brand _ anà
is
aiming for a
quora, up froÀ 25 per
. A{r.r. working on the concept
for the last year,
Real introducÉd
.o 850 Real euality irems this
September - coincitlental but
with a
handful" of
rivals, the Frencirman is star.ting
a small revolution in German!
and Carrefour
3O-per-cenr
product,' Mr Saveuse says,
io holding a packet of chocolaL_
fiìled Mini Double Biscuits.
the contents,'he says as his finger
moye: across the packaging, ,and
rs top left is the..Real quality.;logo.,
Real gets- a better profit margin.
Such logic has seen Èeal,s
foreign rivals push true own_brand
Iines for decades. Real reckons up
to 60 per cent of Tesco,s UK sales
come from its three Tesco brands,
30
rs
'absolutely perfect timing' for
the
economic downturn that iollowed
the banking crisis, the Real head
f"ays.
Although Mr Saveuse
says
that shopping habits at Real have
not yet been affected by economic
tvoes, he stresses that next year
5,r
could see shoppers buying more
own brands as they look foi more
value lor mone),. .Crisis doesn.t
just bring.disadvantages.' he
says.
Civen the power of own brands
, good
rn
times and bad. it
is
ss surprising that German retailers
only launched distinctive
last year. The
cause
Germany's porverful discounters.
AIdi and Lidl have in the past
rn generation helped corner 40 per
cent of the food retail market
-
as against 6 per cent in the
UK - by selling liftle else than
a small range of own brancls,
65 a move copied by Real, with, say,
its lorv-cost .Tip, range.
'But we,re intemationalising
now,'Mr Saveuse says. .In polanà
and. Turkey, we're competing
;o against Carefour and f.r.o]
in Russia and Romania againsi
Carrefour * that has forcJd us
to focus on true own_brand as a
liray of building our presence.,
rs Strengthening
the Real brand
is key to reviving the chain. A
19"T, held back by discounters,
Mr Saveuse reckons the German
hypermarket has a fuiure. He
m should know. Until 2005, he
rvas second-in_command at
hypermarket pioneer Carrefour.
lines
11,4
@ Pearson Education Limited
2010 pHorocoptABr.E
t$
0I0z pallur!1 uollElnp3 uosiPad
9tt
o
Ilavldo)oloHd
(§ tlder8ered) iereqmasla sE Aueureg u1
lueyodurgse uaaq lou spuerq umo e^BLlfiqnn g
salllnlgJlp
u1 s1
ituouora aqt uaqm (!n
umop oE'r1e's1go:d 'sales uaL{M (^
tqBu lsn[s18u1q1auos op ot eut] aq] uaqm (^!
Arln:91gp
suo!}nl!ìsu!
u!
ala/v\
auallxa
lplluPuU uaqru (1;
s8ulqt dnq Allensn aldoad '3la 'Mor-l 'uaqal'alaqnn
laìleu
aL{} uo
aluanlju! Jo loì
(11
P a^eq
pue s1:npold deaq:11as lpqÌ suolleslue8to 11e1at (t
'stugueau
rlaql ol ? aslrrax] u! suolssardxa eql qllEw
saoM
(J
stsl::
(a
lil.uouola
s
sralunorsgp (p
Sulddoqs
V
Eu1tu11
(:
slqeq
]:aj:ad
l[uouo]a
6
(q
urnlumop (u
8u;1ueq
I
§
lnpaanod 9
7.
5 pue ? sqdEltelEd
uorl auolsserdxo
eìsu ol spro,l,t eql qUeW
n
1:npord go adÀl
aues aql JoJ puelq
aueu e Jo a:gtd aql
;o a8elua:rad e se
1:npotd puelq-atols
e 1o
a:ud lergdAl
tUOJi
^AOU
sread g-7 ut sdoqs
slr u! slrnpo.td
pooJ puelq-uMo
s11;o aBeluauad
ro1
anli:a[qo
s.Iueduo3
anou
si:npo:d
pooJ puerq-uMo
;o a8elua:la6
'ua !6 rou alljn^ 'ua^!E lou s! uollEtulolu!
eqlil 'alq?l aql apldtuol ot §t{dsr8eled
aar.{l l§r!, eql uo{ uolleuljoJu! asfì
itou Àr{n / alqm ;/fu1unor rno[
ajols ]o aleJ aql u! alnlnJ e
u; spuerg
a eq spuelq eupu o0
z no^ oì roÀo
(u1r1dse
:j
,ij
.il
::-
.'i
.i
't'a) saul:1pau ialunol aql la^o §
sl:npord 3u1uea1r s
pooj s
;spnpord asaql rol spuelq
poo8
ssal spuelq u/uo aJe'alua1:adxa lnoÀ u1
aureu ueql
I
nort ol
re^o
aLll [q paualo puerq s roJ
pasn arÉ se§erqd oiÀl let{#r
aI Sullles erols
Z qdertered
u1
aloJaq roJ pauo^,t aq leq] uotlpstueEro
qol
atJr {p
st;
eaasAitleuoller sJl
{:
(q
{e
'e§ne^s§ l?o[ lnoqs uolieulloJul §ulBol]al
aql PulJ ol alrlllP aloqn eqt t{tnorq} xa§l
.sje#o
.
lt lpqM Jo suJal
'.. '.,seq dnor8 rauolsnr
EurS;ara auo
'pupjq lalseu
s.ra^pel: srlql Jo
aldoad
r'qr
u!
rpr{} speau
eql'............
...... .aldoad
...... papupdxe ptloN
"r,
{rutJ#i;:rr;t,rr",l
llEl tr{Elu no{
r{ueur lo1 ,{Bm B ur
taìrpru
"U,
leqrvr s!
€
elloN
z
or*rilll,'J,'i""f
'salualuas asaql alepduol ol g aslllaxf
uro{ sglalpe aql asn ,uoN
ffi
(p
^lrelnlriled
i{preur:d (r
{11erruqre1 (q
À1aEnq (e
isqia
pe asaql reeq no{ op rapro
lur|M ul .aarq1 ped ol
'nor lnoqe Surqt lq8rj aql
sÀes
to noi{
.to3
uatsll
rq8rr sr lrnpord aql Jr appap nor{ dlaq
§. r {ìt_} «}
spuerg
m
g
'aqsslod puE sapaljaw ,!pnv
l^wg suolluau ra^eoll
'a8le1 fuaa rq uel alaq peuotlueu
s1:npo.rd uaamlaq selualaJJlp
stJq] §
;e:ls{qd aq1 n
.spnpo.rd
uao^ laq asool.{) no{ dlaq spuelg
€
'saop puelq aql lpqm
Iluo
lnoqe
st uorleuJJoJut srql Z
'uo!]eutoJul Burprtusuell;o Aean
1n1asn B aJe
:aslel Io enrl
.oÀ,U
spue:g
I
iled ol uals!.t f .I$3 «)
§§

Download Report