Private Label Report Publication date: July 2019 Next publication:

Private Label Role of private label Strategy To provide a differentiated product offering that adds value through competitive pricing To entrench the trust and loyalty that shoppers associate with the Dis-Chem brand, demonstrated through the ability to transcend product categories and markets Strategy To support the Dis-chem strategy of being the leading pharmacy retailer in South Africa To deliver a competitive and differentiated product offer, at higher margins, through wide ranges of private and exclusive brands and franchise brands To grow front shop sales by increasing private label and exclusive brand offerings ad promotions Using innovation to increase product offering, in support of trading densities To increase private label by 5% in medium term in both front shop and in the dispensary

Private Label Private Brands The Dis-Chem product range includes an extensive range of exclusive and dealer-own brands, that play across the range from positioning “good”, “better”, “best” and “value”. These brands include, but are not limited to: Dis-Chem: various products, no sub-brand, such as hand wash, aqueous cream, etc Dis-Chem Gold: nutritional supplements Dis-Chem Healthy Living: nutritional supplements Dis-Chem First Aid Dis-Chem Softi: toilet paper and facial tissues

Private Label Exclusive and Dealer-own Brands The Dis-Chem product range includes an extensive range of exclusive and dealer-own brands, including: Healthy Lifestyle and Nutrition Lifestyle Nutrition Lifestyle Food Tony Ferguson Biogen Personal Care Nature’s Nourishment Safeguard Hygiene Wash Babythings Diapers

What media platforms are used to communicate Dis-Chem Private Brand Private Label What media platforms are used to communicate Dis-Chem Private Brand Print Website Dis-Chem private brand features in the Dis-Chem Benefits magazine, broadsheets (in-store and newspaper), online and in- store promotional catalogues. The website includes Dis-Chem brands within value promotions and seasonal offerings, identical to that which is advertised across all other platforms. Social Media Facebook and twitter posts include Dis-Chem private and exclusive brands within seasonal and value promotions. 696k followers (June 2019) 148k followers (June 2019)

What’s going on in-store? Private Label What’s going on in-store? Private label products and exclusive brands are present in all categories, but dominate the foods, slimming, supplements, toiletries and first aid categories Private label blends in seamlessly with similar packaging adjacent to brand leaders, but at a reduced price Prominent private label brands include: Lifestyle Food, Tony Ferguson, Biogen, Dis-Chem Gold, Lifestyle Nutrition, Healthy Living, Nature’s Nourishment, Safeguard

What’s going on in-store? Private Label What’s going on in-store? Private Brand Completing with Market Leader Brands Dis-Chem private brands compete with market leaders in general and niche categories, at markedly reduced prices

What’s going on in-store? Private Label What’s going on in-store? Multiple Private Brand Presence in Key Categories In both the vitamin supplement and toiletries sections, multiple private brands offer similar product offerings, with a differentiation that implies “good, better, best”. Dis-Chem Gold, Lifestyle Nutrition and Biogen offerings within one product category compete with branded products at reduced price points or added value offerings.

What’s going on in-store? Private Label What’s going on in-store? Exclusive Brand Dominates Categories Biogen dominates within the vitamin supplement, sports nutrition and fitness accessories categories.

What’s going on in-store? Private Label What’s going on in-store? Variable Positioning within Exclusive Brands The Nature’s Nourishment brand includes products within categories such as beauty, personal care and toiletries. Within a product category such as hand soap, Nature’s Nourishment products are present in a variety of designs that imply variable positionings, or that compete with brand leaders within this category.

Maryla Masojada | Lead Analyst Andrea Du Plessis | Associate Retail Analyst