Middle East trade show organizer Channels Exhibitions has announced the launch of Private Label Middle East, the region’s first branded products and contract manufacturing event. The show will be held at the Dubai World Trade Center from September 14-16, 2004.
Private Label Middle East is expected to attract exhibitors involved in the research, manufacture and packaging of products for contractors who then sell and market them either as an own label brand or a branded item.
“This event is specifically tailored to meet the changing needs of the retail and wholesale businesses across the region which do not have the capacity or manufacturing capability to produce actual products, but do have the marketing drive and retail exposure to create a branded or private label product,” said Justin Boutros, Channels managing director.
Private Label Middle East will showcase suppliers who have the skills and capacity to produce goods, which are then marketed under individual retailers or wholesalers private labels as their own brands.
“The range can span manufacturers of electrical goods, such as fridges and freezers, through to producers of soaps and detergents. Indeed, anything that is currently sold under a brand could, potentially, warrant a private label or own brand equivalent,” explained Boutros.
“Unlike other events in this region, exhibitors will display finished products capable of becoming brands in their own right. They will not try to sell machinery, but will showcase their manufacturing, packaging and design abilities which visitors could use, outsource or capitalize on to create branded products.”
Internationally, private label and own brands are among the fastest-growing sectors within retail sales, accounting for over 40 percent of total retail volumes in the UK, Germany and France. The UK market for own brands was worth an estimated US $94.7 billion at the turn of the century, according to leading intelligence body researchandmarkets.com
The organization says that in addition to the growth in retail sales overall, the number of own brand ranges has increased as over-the-counter medicines, clothing and footwear, DIY products and electrical appliances have expanded into the private label sector alongside food, beverages and other grocery products.
“In the Middle East we envisage the food and beverage, grocery and perfume and toiletries sectors leading the way with detergents and household products also being impacted,” said Boutros.
“Private label brands have undergone something of an image change in the UK and Europe,” explained Boutros. “They are no longer seen mainly as low-end product ranges. There is a rise in the number of premium own brands targeting high-end consumers.”
Boutros believes private label brands will inevitably become a strong factor within the Middle East’s retail scene. “Throughout the region, retailing has become increasingly sophisticated,” he said.
“If the regional economy continues to grow, private labels will develop as premium brands. And the win-win scenario of private labels is that if the economy does hit a setback, they can adopt the value-for-money positioning for which they were originally known.
“Private label brands have already begun to emerge in the Middle East and we anticipate they will continue to grow at around the 18 percent annual rate they are achieving in Europe. This is particularly appropriate as Dubai looks to launch a new manufacturing cluster within the emirate.”
Private label brands have emerged globally over the past decade driven by a desire of retailers and wholesalers to deliver value for money to end users. “Private label or own brand producers do not need to support their product’s identity to the same degree as those supplied by the big international marketing companies which spend millions on brand support which is ultimately passed on to the end user,” said Boutros.
“Private label and own branded products come with the quality assurance guaranteed by a supplier’s or retailer’s reputation. There is less need to support the brands with marketing campaigns, which means that the money which would have been invested, can be passed on to the consumer delivering better value for money.” — (menareport.com)
© 2003 Mena Report (www.menareport.com)
