1. Private Label Private Label Report Private Label Publication date:
December 2018
Next publication:
July 2019
Private Label
Private Label Report
Private Label

2. PRIVATE LABEL
Private Brand
Confined Label
Exclusive Brand
What is Private Label?
Private brand, Dealer Own Brand and House brand:
A brand of product(s) that is exclusively manufactured by a contract or third-party manufacturer for a retailer, according to retailer specifications, and sold under a retailer’s brand name. Private brand is often tiered according to ‘good, better, best’ brand positioning, however these tiers are defined differently across retailers i.e. some might refer to premium / national brand equivalent / value or fit for purpose
Confined Label, Exclusive Brand:
A brand of product(s) owned by a manufacturer or producer, however exclusive rights are given to a retailer as the sole distributor of the product to the market
Let’s take you on a journey down the shopping aisles of Masscash Wholesale outlets, showcasing their most prominent private brand products

3. Masscash Wholesale Role of Private Label
Private label brand excellence remains a Group focus for Massmart, evident in the ongoing innovation in product range, point of sale and packaging of private label brands
The benefits of private label include: assisting in the implementation of pricing strategies; driving customer loyalty; creating and driving differentiation; increasing profitability; and within the broader Massmart Walmart Group, leveraging opportunities and collaboration with suppliers
Going forward, the overall strategy for private label within Masscash Wholesale will be to focus on new product development and driving increased penetration across various categories. This is underpinned by a key plan on business structures and processes
Contribution of private label
For FY2017, private label made up 4.9% of sales within the wholesale business
The Econo brand comprises 85% of total wholesale private label sales
The Soda-T brand comprises 12% of total wholesale private label sales
The Saverite brand makes up 1,4% of total wholesale private label sales
“Private label underpins a retailer’s tactical position. We have some great brands that continue to do well for us.”
Guy Hayward Massmart CEO

4. Masscash Wholesale Strategic Positioning
Good quality range at an affordable price that satisfies consumers’ everyday needs
Good (value) soft drink offering
Private label range exclusively available to Saverite franchise stores
Provides franchisees with a higher margin product range for increased competitiveness in the market
Customer Profile
LSM 2-6
Range/SKUs
986 SKUs across commodities, toiletries, general merchandise and grocery offering
16 SKUs
16 Variants
42 SKUs including commodities (e.g. sugar, flour and oil), non-perishables and household goods
Price Positioning
Value-for-money “price fighting” brand
Value-price positioning
Good quality, value-for-money products
Offered at a lower price point than the market leaders
Sales contribution (FY2017)
85% of total wholesale private label sales
4.1% of total Masscash Wholesale turnover
12% of total wholesale private label sales
13% of the total CSD category within Masscash Wholesale
1.4% of total wholesale private label sales

5. Econo
The Econo brand was established more than 25 years ago and has since evolved to be a household brand name
The brand offers a range of quality, affordable products including commodities, general merchandise, groceries, toiletries and service department items such as processed meats
The Econo offering remains the largest private label brand within the Massmart Group and the biggest single brand on offer within the wholesale business
It comprised 4.1% of total Masscash divisional sales to FY2017, generated from a total of 986 SKUs
Econo comprises 85% of total wholesale private label sales and is the key brand driving private label success in the wholesale division
The brand promise is to offer customers “value for money” and the assurance of “stringent quality and safety controls” as well as products from a trusted private label brand

6. Econo On-Shelf
Econo has a strong on-shelf presence across wholesale stores, and is utilised to drive both topline sales and margin

7. Soda-T
Soda-T is the private label carbonated soft drink offering within Masscash, with 16 SKUs
Soda-T currently makes up 13% of the total CSD category within the wholesale business

8. Soda-T On-Shelf
Soda-T is sold in singles as well as in 6-packs for Masscash bulk customers

9. Saverite
Saverite stores stock both the Econo brand, as well as the Saverite private label offering
As at FY2017 the Saverite private brand offering comprised 42 SKUs, primarily in the grocery category
Category focus will continue to be on basic foods, as well as on household items such as paper-ware, and cleaning materials

10. Saverite On-Shelf

11. Maryla Masojada | Head Analyst Kate Shirley | Retail Analyst
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Maryla Masojada | Lead Analyst Kate Shirley | Retail Analyst
Kate Shirley | Retail Analyst – New Channels Maryla Masojada |Head Research
Kate Shirley | Retail Analyst – New Channels Maryla Masojada |Head Research
Kate Shirley | Retail Analyst – New Channels Maryla Masojada | Head Research
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Disclaimer
These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects.
Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein.
TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.
TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy.
* TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence
Disclaimer
These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects.
Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein.
TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.
TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy.
* TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence
Disclaimer
These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects.
Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein.
TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.
TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy.
* TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence
Disclaimer
These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects.
Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein.
TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.
TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy.
Disclaimer
These materials and the information contained herein are collated by TI* referencing a wide range of public domain data sources, face-to-face interviews, retailer presentations and financial reports, and are intended to provide general information about the South African consumer goods trading environment and selected retailers, and are not intended as an exhaustive treatment of such subjects.
Whilst every effort has been made to ensure that the information published in this work is accurate, your use of these and the information contained herein is at your own risk. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business, and TI makes no express or implied representations or warranties regarding the accuracy of the information herein.
TI will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.
TI expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy.
* TI refers to The Retail Workshop (Pty) Ltd trading as Trade Intelligence