Carrefour is launching four new exclusive non-food private label lines in Spain. The own brands include products advertised for their innovation and design properties. The Poss brand is dedicated to high tech products and accessories; Klindo for everyday household goods (e.g. ironing boards); Mandine for kitchenware; and Nalk&Rey for health & beauty appliances (hairdryers, shavers etc).
LZ Retailytics notes that the lines have already been introduced to a number of European markets and should ultimately be distributed globally. Further, Carrefour is also currently introducing a new private label line for garden furniture & accessories dubbed Hyba.
As much as unified branding ensures product visibility and therefore sales with limited effort, category own-brands give shoppers the illusion of choice while giving the retailer more flexibility to differentiate from competition beyond prices, particularly in terms of innovation and exclusives. Their mid-range positioning could also revitalise sales in key categories, something particularly relevant for hypermarkets' ailing non-food sales. We feel the challenge for Carrefour will be to keep the brands alive in the store going forward.
Carrefour is not the only retailer which has curbed its umbrella private label strategy in the area of health & beauty and non-food to strengthen the perceived expertise of its products. Staying among French hypermarket operators, we can think of competitor Auchan which rolled out dedicated lines such as Cosmia for Health & Beauty, or introduced Qilive for consumer electronics & household appliances. Auchan's commitment has reached new heights as it is developing standalone stores for its In Extenso fashion private label line in Romania and Russia... A pledge to its own brand only a few retailers have been prepared to do so far.