DUBAI LEADS THE PRIVATE LABEL BOOM
DUBAI is emerging as a front-runner in the explosive worldwide growth in private label marketing, with exhibitors at Private Label Middle East 2006 reporting sales increases of up to 50 percent as a result.
The response is line with global trends, with private labels showing sales growth at double the rate of branded counterparts and now accounting for 17 per cent of all goods sold worldwide.
In department stores alone, in-house brands represent more than 40 percent of sales.
And as an increasing number of new supermarkets and stores open in Dubai and across the Middle East, demand for contract-manufactured own-label products is soaring.
Close to 80 exhibitors from 21 countries took part in Private Label Middle East 2006 that ended a three-day run at the Dubai World Trade Centre yesterday (Tuesday, Sept 19) attended by 3,000 trade visitors from around 40 countries.
They showed a wide diversity of products – ranging from food and beverages to home care and hygiene, industrial chemicals, and clothing.
Turkey is one of the major centres for private label manufacturing, and had one of the biggest representations from any single country. The Turkish national pavilion hosted 12 companies, all of them reporting an excellent response.
Delegation leader Gulden Parlak, operations manager of Istanbul-based Beauty Eurasia, commented: “The success of the event is reflected in the growing number of Turkish exhibitors. Word has spread since the first Private Label Middle East show two years ago that this is a great platform for access to new markets. Consequently, more and more producers are taking part.
“Several were able to close substantial deals in the course of the event, but the main objective is to develop leads that will later be converted into firm business.”
Her views were echoed by Oktay Orday, deputy general manager of Dalize Cosmetics, part of Turkey’s Matsan Group, and a leading producer of aerosol products and packaging.
“We produce about 200 million aerosol cans a year, half of them for private labels,” he said. “France, Spain, and the UK are our main markets traditionally, but Gulf states and the Middle East are becoming increasingly important.
“This is the region’s only exhibition dedicated to private labels and contract manufacturing so it is essential to be here.”
Justin Boutros, managing director of event organisers Channels Exhibitions says the growing popularity of the show underlines the boom in private labels worldwide, and the unique trading opportunity the industry presents.
“Private labels have come a long way from their original reputation as the poor relations of national brands,” he says. “The ever-expanding number of exhibitors and products is indicative how private labels have come of age. They now compete successfully on a level basis with national brands, and many have become synonymous with quality and innovation.
“They are no longer copycat products: retailers must retain customer loyalty, generate a strong store identity, and improve margins, so their private labels must compete effectively both with branded products and other retailers’ brands.”