There is no retail chain in the Czech market that would not offer goods under their own label. What is the cause? In most Czech customers, price is still the most important criterion for purchase. If we compare common prices of branded products and private labels, the price difference can be up to around 10 CZK. However, the reason may not be in using materials of lower quality or cheating with the product basic ingredient. Actually, packaging and saving advertising and marketing costs play an important role in private labels.
The Swiss and Spaniards trust the private labels most. Private labels occupy over 50% of their overall shopping basket. In the Czech Republic, the ratio exceeded 30 % last year and the most sought after commodities are dairy products – milk, curd cheese and spreads. Four of ten products in the shopping basket belong to a retail chain label in Germany, Austria or Great Britain.