Exclusive Interview with
President of PLMA.

An exclusive interview with Brian Sharoff, Present of PLMA's "World of Private Label". Brian talks to ITP about the effect of EU expansion on private label and the launch of the 'Idea Supermarket' concept...

• You mention that EU expansion will increase private label opportunities, what affect is this likely to have on established private label manufacturers in the rest of Europe?

The expansion of the EU has brought with it the expansion of retailing into markets in Central and Eastern Europe that had previously only known planned-state economies. In many cases, it has been retailers from the UK, France, Belgium, Germany and The Netherlands that have moved in to build modern distribution systems. As they have done so, they have brought their understanding of marketing with them, and that has included emphasis on private label. This, in turn, has meant new business for established manufacturers of private label, who have built up relationships with those retailers who have expanded. As EU expansion continues, the process will be repeated.

• How well established are private label manufacturers in the newly joined EU countries?

There are many manufacturers in new EU countries who see the possibilities of private label for themselves. They may not have the experience that traditional suppliers bring with them, but their desire to build their businesses can often overcome other shortcomings.

• A large contingent of exhibitors from countries such as Poland, Hungary, Czech Republic and Turkey are expected to attend the show, does this mean you are also expecting a large attendance from retailer buyers from these countries as well?

Retail registration in general is larger than last show as more executives and buyers want to learn as much as they can about private label. Obviously, retailers from Central and Eastern Europe, especially local retailers, are particularly anxious to build their private label programmes.

• The economies in Asia and the Far East, particularly India and China, are becoming a force to be reckoned with, what sort of participation will these countries be representing at the upcoming PLMA?

Many international retailers are already sourcing for products in Asia and are developing extensive buying operations there. As of now, we have not seen suppliers from this part of the world deeply involved in trade shows. They seem to prefer buyers traveling to Asia to meet them in their factories.

• Is there a predominance in certain sectors? For instance, a greater or lesser demand for private label in the food and non-food supermarket sector, or DIY sector? Or equally spread?

The demand for private label crosses all formats. Its popularity is based on retailer marketing. As more retailers see the advantages of their own brands, private label grows.

• Dependent upon your response to the above question, what direction do you foresee future trends taking?

The direction private label will take is based on the direction retailing will take. As of now, retailers are growing in power and importance and their own brands will grow with them. In general, the future trend for private label is greater and greater diversity and more and more emphasis on quality and performance.

• Bearing in mind that non-food ranges are the driving force of the European retail market, do you anticipate an increased demand for non-food private label business?

I think we are already seeing that demand as retailers add non-food categories. On the other hand, we are also seeing non-food retailers adding food categories as a way to bring customers into their stores more frequently so that they can purchase non-food products at the same time.