‘Right Approach To Private Label Will Lead To Long-Term Brand Loyalty’, Say Regional Retail Leaders

Private label products are poised to take up more space on offline and online retail shelves as major retailers around the world listen ever-more intently to their customers when it comes to price, quality and product options. That is the verdict of industry heavyweights ahead of the first Private Label and Licensing Middle East Exp, the MENA region’s first dedicated private label and licensing exhibition, which runs at Dubai World Trade Centre (DWTC) from 29-31 October.

As consumer preferences and buying habits continue to evolve around the world, retailers spanning the full food and non-food FMCG sectors are constantly searching to expand their product offering to meet demand.

Multinational corporations have succeeded in latching onto the growing global private label trend. Amazon, the world’s largest online retailer, which provides a platform for brands to sell their own private labels, recorded USD450 million in sales of its own branded products in 2017.

MENA region primed for private label growth

The trend is also gathering pace across the Middle East and North Africa (MENA). While private labelling is entrenched in sectors such as commercial aviation, hospitality and cosmetics, more brands across the full retail spectrum, from grocers to fashion retailers, are recognising the opportunities afforded by private labels.

Such is industry demand for a dedicated platform, the inaugural Private Label and Licensing Middle Expo has attracted more than 130 specialist manufacturers from more than 50 countries with more than 5,000 local and international visitors expected descend on the three-day event to network and do business.

Carrefour, the Retail Excellence Partner of Private Label and Licensing Middle East, has witnessed private label success with the introduction of its Bio line and Carrefour-branded products across the region. Miguel Povedano, the head of operational excellence for Carrefour in the region, explains that while the private label trend offers opportunities for brands to compete, it also encourages retailers to consider quality control and the end consumer.

“Retailers have a responsibility to instill trust and demonstrate to customers that private label products are on par with their counterparts. The process with private label products starts with a benchmarking exercises, where retailers conduct research to identify the market-leading brands,” said Povedano, COO of UAE & Head of Operational Excellence, Carrefour of Majid Al Futtaim Retail.

“The entire development cycle is intense and can take up to seven months, however we don’t stop there, we make sure to put all our products through quality assurance tests up to ten times a year.”

The private label brand of Lulu Group, meanwhile, covers more than 2,500 products and having first hit the shelves a decade ago, Lulu branded products are now one of the retailer’s best sellers in its 179 stores across the UAE and wider Middle East, North Africa, India and the Far East.

The first Private Label and Licensing Middle East expo, which will run alongside Gulfood Manufacturing 2019 allowing participants to explore the full business potential of the food industry supply chain, has come at an opportune moment for the UAE-based group as it looks to double its private label portfolio by next year.

“We listen to feedback from our loyal customers and understand that we need to constantly innovate our products to meet those needs. We’ve seen strong growth in brand loyalty through our private label products. That loyalty is very important, which is why we are constantly on the lookout for new products to expand our portfolio,” said Mr Shamim Sainulabdeen, Head of Product Development Division of Lulu Group.

“Our customers are looking for value for money and there is a shift in demand for locally produced products. Having our own private label brand allows us to deliver this as we source as many quality ingredients as possible from local suppliers. We also source the high-quality products from the most reliable leading manufactures around the globe”.

As more retailers demonstrate agility to meet consumer demands and make their own mark in the private label space, the first Private Label and Licensing Middle East Expo is a significant step in shaping the sector’s future, says show organisers.

“With more businesses across the food and non-food FMCG sectors realising and maximising the potential of private label, the inaugural Private Label and Licensing Expo is the industry meeting point that will help set the future agenda,” said Trixie LohMirmand, Senior Vice Presidents, Events and Exhibitions, DWTC.

“Leveraging the co-location with Gulfood Manufacturing and Dubai’s strategic position as a business incubator, accelerator, and gateway to new markets, the three-day expo will be abuzz with industry-defining discussions, game-changing business opportunities and unprecedented networking,” added LohMirmind.

Show Information

The dedicated expo focused on private labelling, brand licensing and contract manufacturing includes a range of features designed to enhance the experience of visitors and exhibitors alike. A dedicated Hosted Buyers Programme has attracted pre-qualified buyers from F&B to FMCG with a purpose of sourcing new products; meeting with global suppliers and manufacturers offering new business opportunities, while the Meetings Programme will enable retailers and FMCG players to meet and network with providers. Furthermore, the RFP Portal for will allow buyers to upload purchasing requirements, receive proposals and schedule meetings ahead of the show.

The Private Label & Licensing Middle East Summit will provide a tailored knowledge-exchange arena for industry experts to share insights on product innovations and the latest market trends, including sessions on ideation, distribution and customer loyalty. Elsewhere, Brand Licensing Workshops are free-to-attend sessions designed for manufacturers and retailers to understand the importance of product differentiation as a conduit to increasing bottom line.

Private Label and Licensing Middle East 2019 is open from 10 am – 6 pm on 29-30 October and 10 am – 5pm on 31 October. For more information, visit www.prime-expo.com