Most retailers are now making inroads into the mid- and premium-price segments with their own brands – following in the footsteps of top retailer.

Supermarkets are one of the outlets where the most own brand labels can be found, and these products are gaining ground as consumers perception over their quality improve.

Currently in Panama 2% of supermarket sales correspond to own or private brand labels and 64% to cheaper brands, according to studies cited by Martesfinanciero.com.

The low penetration of these kinds of brands in the Panamanian market represents a growth opportunity, mainly because the perception that consumers have of such brands is changing, both regionally and globally.

Randall Hernández, professor of marketing at the American University of Panama, told Martesfinanciero.com that “… Among the advantages of having own brands are price, cost of production and greater control over the distribution channel. The risks decrease because you can supervise operations more accurately and play around with cash flow in each product category. The Panamanian market still has far to go. If you look closely, this trend creates more competition. ”

Virginia Solis, manager of own brands at Machetazo Group, added, “… The incorporation of own brands is profitable whenever you have an important volume that allows for good negotiations with suppliers. With that you can obtain better profit margins, compared with the leaders of the various segments. “