Providing opportunities: Metro’s ‘Own Brands’ helps promote local products
Allows suppliers to use retail giant’s distribution channels to market their products.
Metro has always been keen to work with small and medium scale businesses and educates them on marketing and distribution channels for their respective products. PHOTO: FILE
LAHORE:
For entrepreneurs, who are struggling to develop business channels in the prevailing negative economic scenario of the country, German-based retail outlet Metro Cash and Carry is providing them with the “best” option to market their products through Metro’s ‘Own Brands’ section.
The concept is new to the Pakistani market, but not in other locations Metro operates in around the world. Through own brands, Metro provides an opportunity for small and medium scale industries to market their products using Metro’s distribution channels.
To accomplish this, Metro has been always keen to work with small and medium scale businesses and educates them on marketing and distribution channels for their respective products.
“We began implementation of the own brands concept in Pakistan in 2010, and since then we have launched over a thousand stock-keeping units for 85 products,” said Laeeq Durrani, head of Own Brands, Metro Cash and Carry, while talking to The Express Tribune. Another 95 products are in the pipeline, which will be launched within the next year, Durrani added.
Involving and relying on local suppliers is a basic strategy for Metro to operate in any part of the world.
In Pakistan, consumers are unaware of the own brands, however, Metro’s officials are happy with the progress in the past two years. “In the own brands aisle, the quality of the product is more or less the same compared to any recognised brand in the market, but prices are relatively cheaper,” explained Durrani.
Metro’s Own Brands were placed with competitor in 10 stores in Pakistan. The products are slowly gaining recognition among all categories of products stocked by Metro.
“This is a golden opportunity for those suppliers, who were previously stocking their products at their own or some other local retailer and facing a tough time. The Own Brands platform will enable them to display their products in Metro Cash and Carry stores across the country, but with five core brands in two price tiers and packaging designed by Metro.
“We do allow small and medium sized businesses, but never compromise on quality as a bad product review will build a negative image for the company and potential customers,” Durrani said. Therefore, products have to pass Metro’s strict in-house assessment as well as hold international certifications.
For suppliers, displaying their brands in Metro stores is not the only aim as the company will supply those products to other retailers, wholesalers to market nationwide. And once Metro is successful in marketing the product nationwide, it will contact its headquarters for the imports of Pakistani-made ‘Own Brands’ to other Metro stores worldwide.
Presently, Metro Cash and Carry Pakistan is importing some products in the electronics category as well to display under the ‘Own Brand’ aisles.
According to Durrani, under company regulations, Metro will import electronics until it finds any suitable electronics supplier in Pakistan. The next project for Metro is to enter the beverages segment, for which they were currently searching for suitable local suppliers.
Currently, Own Brands contributes 18% to Metro Cash Carry International’s revenues with the target of contributing 25% by the end of this year.
In 2012, Metro’s turnover was Rs36 billion, of which the Own Brands segment contributed 7%. In 2013, the company is expected to hit turnover of Rs46 billion, of which Own Brands aisle is expected to contribute 8.5%.
Published in The Express Tribune, April 6th, 2013.
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For entrepreneurs, who are struggling to develop business channels in the prevailing negative economic scenario of the country, German-based retail outlet Metro Cash and Carry is providing them with the “best” option to market their products through Metro’s ‘Own Brands’ section.
The concept is new to the Pakistani market, but not in other locations Metro operates in around the world. Through own brands, Metro provides an opportunity for small and medium scale industries to market their products using Metro’s distribution channels.
To accomplish this, Metro has been always keen to work with small and medium scale businesses and educates them on marketing and distribution channels for their respective products.
“We began implementation of the own brands concept in Pakistan in 2010, and since then we have launched over a thousand stock-keeping units for 85 products,” said Laeeq Durrani, head of Own Brands, Metro Cash and Carry, while talking to The Express Tribune. Another 95 products are in the pipeline, which will be launched within the next year, Durrani added.
Involving and relying on local suppliers is a basic strategy for Metro to operate in any part of the world.
In Pakistan, consumers are unaware of the own brands, however, Metro’s officials are happy with the progress in the past two years. “In the own brands aisle, the quality of the product is more or less the same compared to any recognised brand in the market, but prices are relatively cheaper,” explained Durrani.
Metro’s Own Brands were placed with competitor in 10 stores in Pakistan. The products are slowly gaining recognition among all categories of products stocked by Metro.
“This is a golden opportunity for those suppliers, who were previously stocking their products at their own or some other local retailer and facing a tough time. The Own Brands platform will enable them to display their products in Metro Cash and Carry stores across the country, but with five core brands in two price tiers and packaging designed by Metro.
“We do allow small and medium sized businesses, but never compromise on quality as a bad product review will build a negative image for the company and potential customers,” Durrani said. Therefore, products have to pass Metro’s strict in-house assessment as well as hold international certifications.
For suppliers, displaying their brands in Metro stores is not the only aim as the company will supply those products to other retailers, wholesalers to market nationwide. And once Metro is successful in marketing the product nationwide, it will contact its headquarters for the imports of Pakistani-made ‘Own Brands’ to other Metro stores worldwide.
Presently, Metro Cash and Carry Pakistan is importing some products in the electronics category as well to display under the ‘Own Brand’ aisles.
According to Durrani, under company regulations, Metro will import electronics until it finds any suitable electronics supplier in Pakistan. The next project for Metro is to enter the beverages segment, for which they were currently searching for suitable local suppliers.
Currently, Own Brands contributes 18% to Metro Cash Carry International’s revenues with the target of contributing 25% by the end of this year.
In 2012, Metro’s turnover was Rs36 billion, of which the Own Brands segment contributed 7%. In 2013, the company is expected to hit turnover of Rs46 billion, of which Own Brands aisle is expected to contribute 8.5%.
Published in The Express Tribune, April 6th, 2013.
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