RETAIL>"Free labels"in Russia: thank you Mosmart!

In 1976 French retailer Carrefour disrupted retail sector in France by launching its “free labels” (“produits libres”): basic products like bread, oil, flour..at low prices (16-29% lower than national brands.), without brand name but just the name of the product (bread, oil, flour, coffee…)

A real success, supported by a strong advertising campaign: “Tasty too, but cheaper” . Carrefour wanted to get free from national labels and signed the beginning of private labels in France.

30 years later in Russia retailer Mosmart took the same initiative and attack the lower price segment with the label “Лучшая цена” ("best price"). Nothing to do with “private labels” (Mosmart has got as well its private label “Mosmart” for around 1000 products) like НАШ products or imported Auchan products. «Лучшая цена”, this is more than 300 products (Carrefour started in 1976 with 50 products and went to 100 products when they stopped free labels in 1985) with very simple packaging, just name of the product and low prices.

We checked some prices within the same store:

Coffee:

Nappys (9kg-18kg)

…And you will pay 1,90 rubles for a pack of 10 tissues; 34,90 rubles for a can of 565g pineapple!…a revolution, more than visible in stores and in all departments (unfortunatly such products in stores Auchan called "economic products"- with yellow/green stripes-are quite unoticed): packaging is a real success (white and red), merchandising as well (a substantial place in each department, indicated) congratulation!Just one question pending: why didn’t we see any outdoor advertising for this fabulous initiative? Remember, success of Carrefour was first thanks to its 2 months outdoor campaign (30 million francs). If you want this range of products to generate traffic you have to communicate. Otherwise, how can people know about it ?

Sources:


http://www.distripedie.com/distripedie/spip.php?article221


http://www.carrefour.com/cdc/groupe/historique/


www.mosmart.ru