The Representative of the Resource Group Spoke about the Experience of Working with Private Labels on International Markets
Dmitry Antonov, Senior Vice President of the Resource Group, was one of the key speakers at the online conference Export of Russian agricultural products using private brands: A strategy for success. The event was organized by the Federal Center for the Development of Agricultural Products Export of the Ministry of Agriculture of the Russian Federation Agroexport on March 11.
In his speech, he noted that the use of such a tool as private labels is not typical for the export of poultry meat products produced by the Group. This is due to the fact that products are often sold not through retail channels, but to the HoReCa and processing segments.
Managers of the Resource Group are making efforts to bring branded products to international trade networks, but this process is very difficult, as well as opening new markets and expanding the presence of products in them in general. There is a specific list of potential risks associated with difficult contractual conditions, including deferred payments, refunds, marketing campaigns (for example, two chickens for the price of one) and others.
As the speaker noted: “We use the private label mechanism for a number of Middle Eastern partners. We cooperate not only with chains, but also with wholesale companies. If we talk about the Chinese market, then we consider it expedient to master, first of all, electronic sales channels”.
Along with the production and export of poultry products, the Resource Group of Companies is engaged in the production of natural vegetable oils. In this case, the situation is different, and the private labels are used in cooperation with the Uzbek partner Nobel Trade. The counterparty sells about 35-40% of the products under its own brand, and the rest of the supply is carried out under the brands of the Resource Group.
The representative of the Resource Group also drew the attention of the conference participants to the importance of being very careful when working with private labels. “Correct registration in documents of the acquisition and separation procedure, issues of working with packaging and containers, agreements within the framework of private label use - this is a large field of activity for legal services. Despite all the difficulties and subtleties, I fully admit that small and medium-sized companies can unite to make sales through the private label scheme,” - said the expert.