Digest №1

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Private label industry in Russia is young and slightly growing market with huge potential.  Development  industry  in Russia is a long-term trend.

Now it’s the turning point when private labels development in Russia generates growth and extra profit for retailers.

Now 81% of Russian buyers purchase the goods under PL of retail chains. Private label has rooted solidly in the mode of living and buying for general Russian consumer and will not leave the shopping cart regardless the decrease or increase of the buyers’ income.

During pandemics the range of PL products became much wider. Buyers prefer much often in the following product categories: alcohol, tea and cleaning products.

Russian retailers actively develop private labels. Development of PL in Russia started with the “First price” goods,  then arrived brands of “available quality” and now various PL goods are represented in all price segments.

Buyers name the following criteria increasing the PL sales: “high quality for reasonable money”, “private labels inspire confidence”, “products’ taste is same as the genuine ones”, “private labels quality is same as the original manufacturers’ brands”. 


Before pandemics general demand for Private labels was decreasing; the trend became opposite with pandemics start and 2021 PL share in the general retails sales structure showed record figures for the last 5 years.

  • In 2020 in “Pyaterochka” chain the PL share grew from 13,9% to 17,4%, in Q1 2021 года it reached 20,4%.
  •  Last year over 600 of different PL products were launched followed by 130 more in Q1 2021.
  • “Magnit” reported 10% share of PL sales in the overall revenue of 2021. The chain plans to increase this upto 25% in 2025.
  • “Verniy” – current share of PL sales is 7%, plan to close 2021 sales at the level of 9,8%.
  • “Auchan” sells each fifth product under its private label.


Key Trends in purchase of PL which market players consider when launching and developing PL:  

  • Rationality – buyers actively search products of high quality at low price.
  • Premiumization – PL segment is becoming more and more interesting for customers with high income.
  • Increasing necessity for goods of Healthy Lifestyle in goods under PL. (Pandemics stressed the importance of health care. Example:  iHerb plans to launch own trademark production in Russia).
  • Active sales PL online, products information search using digital tools. (Example: Ozon plans to launch own trademark production in Russia). 


Over 50% of Russian retailers plan to increase the availability of PL at their shelves in 2022 responding to the increasing demand.

This allows to state that buyers appreciated and trusted PL goods; further increase of PL sales is expected; thus retailers are very likely to invest in PL development.