What is a private label and why should you prefer these products?

You've probably noticed products in the store that are affordably priced and whose brand name you can't really associate with any well-known manufacturer at first. If so, the products may be the retail chain’s private label. We will give you an overview of what a private label is, what its price consists of, and why you could prefer private label products, below.

Nowadays, almost every retail chain has its own private label, with the products specially ordered by the chain and sold only in the stores of that chain. The product may be an existing product from a well-known manufacturer that is packaged in the retail chain's packaging, or a product specifically produced for the customer.

In an increasingly competitive environment, one of the main reasons for developing private label products is the intention to stand out and offer consumers unique and affordable products. Prisma's private label brands include Coop (formerly Rainbow), Xtra, Ciraf, House and Kotimaista.

How is the good price formed?

The first advantage of private label products is their lower price compared to similar products from well-known brands. Marketing, from packaging design to advertising, forms a fairly influential part of the pricing of well-known brands. Here is where savings are made on private label products, but this does not in any way compromise the value of the product itself.

The price is certainly affected by the quantity of the products ordered. Large retail chains purchase products in large quantities, taking advantage of the economies of scale. The savings achieved by purchasing large quantities at a good price are particularly evident in dry ingredients with a long shelf life that can be sold over a longer period of time, as well as frozen products and consumer goods.

In Prisma stores, you can find private label products in every department, of course, from the milk shelf to barbecue charcoal.

Are private label products high quality?

No chain store wants to ruin its reputation by offering poor quality products under its own name. For private label products, quality requirements are followed particularly strictly.

The compliance of Prisma's private label products with the compliance requirements established for the Nordic countries is tested by our parent company S-Group in Finland. This provides assurance here as well that our own brands are not only affordable but high-quality.

In addition to product-specific quality and safety requirements, S-Group's private label products must be responsibly produced.

Why prefer private label products?

Private label products are becoming increasingly popular year by year. They have been particularly welcomed in the recent years, as many families are finding it hard to cope.

By preferring cheaper private label products over regular ones, you can save money without having to compromise on quality. The cheaper private label products are also preferred by buyers for whom economical and responsible consumption is part of their lifestyle.

Do you use any of Prisma’s private label products? You can buy our private label brands Coop, Xtra, Ciraf, House and Kotimaista from ePrisma and all Prisma stores.