This year, the Private Label Summit, an important event of fast-moving consumer goods retail, was organized by PLAT Private Branded Products and Industrialists Association. At the 8th Private Label Summit, which was held with the presentation of Pınar Altuğ, M. İmer Özer, Board Chairman of PLAT, the representative of the sector in Türkiye, stated that the market share of private label products is 28 percent and emphasized that this rate should be increased further.
Enriched with valuable speakers and prominent content, the Private Label Summit stood out as an event that shapes the industry. This 8th summit, held at Kurtköy Crowne Plaza Hotel on Wednesday, December 20, brought together members of the PLAT Association, consisting of Türkiye’s leading FMCG manufacturers and suppliers, with national and local retail chain managers. The evaluations, research and encountered problems regarding the Private Label sector were discussed at the event.
- İmer Özer: “We need to address the issues”
- İmer Özer, Board Chairman of PLAT Association, emphasized in his speech at the opening of the 8th Private Label Summit that they can produce solutions to the problems experienced in the sector together with all stakeholders of the sector. Stating that 2023 will be a difficult year, Chairman Özer said, “Considering the earthquakes, developments in the economy and many other issues, 2023 was a difficult year. We are here to add value to both ourselves and our company. The most important point of these organizations is to come together and produce solutions to the problems we experience in the sector. Rather than the approach that if you don’t make the issues an issue, there will be no issues, I think there is no problem that we cannot solve when we bring the issues to the agenda, and I want us to make the issues a matter.”
“We need to raise the Private Label rate higher”
Stating that the Private Label sector does not like surprises, Chairman Özer said, “If you go to the place where you are bored, life will start to become abundant. Companies fail not because they do wrong, but because they continue to do the right things for too long that once brought success. Therefore, we need to update our way of doing business according to the requirements of the day. Private Label products offer consumers products of acceptable quality at much more reasonable prices compared to branded products. This brings about both curbing inflation and increasing the purchasing power of the consumer. For this reason, we need to increase the Private Label Market share, which stands at 28 percent, higher.”
“Türkiye differentiated itself positively from the world and European markets with strong volume growth”
The program continued with the presentation of NielsenIQ Türkiye General Manager Didem Şekerel Erdoğan and NielsenIQ Türkiye Retail Services Director Serhat Sükan, where they discussed consumer priorities in the changing world and the changes in the Private Label market.
Sharing with the participants the trends that will mark 2023 and shed light on 2024, Didem Şekerel Erdoğan stated that the Turkish FMCG market, excluding cigarettes and alcohol, grew by 84% in the first 10 months of the year. Erdoğan shared that 6 points of this was due to volume growth; she underlined that Türkiye differentiates itself positively from the world and European markets with its strong volume growth.
Stating that shoppers will switch to different price segments within the Private Label product world in 2023, Erdoğan emphasized that it is the right time to move to different price and product segmentations in the Private Label product range, as in branded products.
“Consumer expenditures shifted from out-of-home consumption to in-home consumption”
Indicating that consumer spending has shifted from out-of-home consumption to in-home consumption, Didem Şekerel Erdoğan and Serhat Sükan underlined in their evaluation that this situation is an opportunity for brands and that retail products are more in focus in these preferences.
Noting that they turned to Private Label in order to meet the needs of customers, Erdoğan and Sükan stated that in research conducted in Türkiye, there has been an increase in the number of people trying different supermarket brands in the last 12 months. In the evaluation, it was stated that 71 percent of consumers switched to a more affordable supermarket brand, and that price and quality stood out among consumers’ motivations for purchasing supermarket brand products.
Sectoral sketches from BKM Mutfak team
The morning session of the summit was completed with the sketches of experienced actors Gülhan Tekin, Rüştü Onur Atilla, Cemile Canyurt Kaya and Onur Buldu, members of BKM Mutfak, about the events in the industry. Experienced actors provided entertaining moments for the audience.
In the afternoon sessions of the highly anticipated meeting of the retail industry, A101 Executive Board Member Responsible for Purchasing and Marketing Aziz Şahin, Migros Group Marketing Executive Board Member Ekmel Nuri Baydur, CarrefourSA Deputy General Manager Murat Dinçer and Economist Prof. Dr. Daron Acemoğlu shared their insights.
“All households buy and use Private Label no matter what.”
A101 Executive Board Member Responsible for Purchasing and Marketing, Aziz Şahin, stated in his speech that consumers’ interests are directed towards Private Label products, and that Private Label brands and manufacturers contribute to the growth of Türkiye. Şahin said, “All households buy and use Private Label no matter what. Private label products are becoming increasingly important in choosing discount markets. 37 percent of consumers buy more private label products compared to the previous year. This picture shows the direction we will go in the coming years.”
“We expect an increase in demand for private label products in 2024”
Expressing that as the price difference between brand and private label products widens, opportunities arise for local brands and new private label products, Şahin said, “As our Mehmet Şimşek, Minister of Treasury and Finance stated, there will be a cooling in the economy and a contraction in demand in 2024. We expect an increase in the demand for private label products in this contraction.”
“Imported products must be produced in Türkiye”
Migros Group Marketing Executive Board Member Ekmel Nuri Baydur, who came to the stage after A101 Purchasing and Marketing Executive Board Member Aziz Şahin, argued that import-based products should be produced domestically.
Pointing out that Private Label products are very valuable for Migros, Baydur said, “We are working with you, our valued producers, on what we can do to make our people’s lives easier and improve their quality of life in intensive cooperation. For us, Private Label products are no different from branded products, in fact they have a positive privilege. PL producers in the Migros ecosystem have reached international standards. We have to take retail together with you and always work arm in arm. As a company, we have a slogan. ‘We owe a debt to our country.’ We believe that imported products should be produced in Türkiye. I believe that in the coming period, Türkiye will finish its new import products and produce them itself.”
“Our most important focus for private brands is sustainability.”
Sustainability was the main topic of the statement of CarrefourSA Deputy General Manager Murat Dinçer, who reminded that the most important aspect of private label products is to give back to these lands what was taken from these lands.
“The demand for private label products is increasing day by day.” Dinçer said, “One of the most important focal points for private brands is sustainability. Within the scope of sustainability, we continue our innovative work without compromising on quality. With our private label products, we started to export a significant amount not only to our domestic consumers but also abroad. Our biggest goal is to deliver the products produced in these lands to the customers there.”
Prof. Dr. Daron Acemoğlu: Türkiye has a 20-year window in front of it
Closed the summit with his speech focusing on artificial intelligence and efficiency, Economist Prof. Dr. Daron Acemoğlu made the following statements,
“We cannot produce enough productivity in Türkiye. The reason for this is that we cannot use technology efficiently. Türkiye’s strongest point right now is that it has a dynamic young population. Türkiye has a 20-year window in front of it. An aging population will emerge in 20 years. Therefore, efficiency needs to be increased in this process.”
“We need to adapt to a world economy with high interest rates”
Acemoğlu said, “Recently, with the increase in inflation, interest rates have also started to increase. We need to adapt to a high-interest world economy. We live in a globalized world. Türkiye is now part of the world’s supply chain. But the supply chain around us is constantly changing. Competition between China and America caused exports in China to decline. This was replaced by Taiwan and Vietnam. Türkiye needs to find a place for itself in this newly changing chain. This is both an opportunity and a threat. Because Türkiye currently has insufficient technological infrastructure to compete with Vietnam. Türkiye has a high potential if the right investments and right steps are taken.” He concluded.
Öykü Gürman surprise at the summit
There was also an Öykü Gürman surprise at the summit. More than 1500 participants who filled the hall celebrated the 100th anniversary of the Republic with the 10. Yıl Marşı and Memleketim song, accompanied by the Famous Artist. Hundreds of people accompanying Öykü Gürman with Turkish flags in their hands generated colorful images in the hall.