Own Brands in Panama

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.

Tuesday, March 24, 2015

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. "

More on this topic

Private Label: Arrived to Stay?

August 2019

In the retail business, large distributors boost the sales of their own brand products through strategies aimed at consumers who prioritize the price factor over other elements when buying.

Globally, the tendency to buy private label products is becoming more and more evident in markets, as companies engaged in the retail trade of other products, such as supermarket chains, are capitalizing on their experience by placing their own products and competing with their suppliers.

Rise of Own Brand Labels in Peru

April 2015

Eight in ten Peruvians buy own brand label products, with bread, rice and oil having the most presence in supermarkets

From a statement issued by the Costa Rican Foreign Trade Promotion Office:

Peruvians prefer to shop in supermarkets, because of the variety of products on offer , as well as for reasons of safety and comfort.

Consumption in Central America: Some Rise and Others Fall

March 2015

In 2014 the volume of household consumption increased by 16% in Nicaragua, 7% in El Salvador, 5% in Panama and 6% in Guatemala, while in Costa Rica and Honduras it fell by 1% and 5%, respectively.

Panama stands out because of the rapid growth of its economy in recent years, which is currently visible in the consumption of its inhabitants, which in 2014 grew by 5% in turnover.

Private Brands Have 50% of Market in Europe

June 2014

Private brands, also known as intermediaries or retailers, are being increasingly sought out in developed markets such as those in European countries.

From a press release issued by the Foreign Trade Office (Procomer):

A study by the consultancy company Nielsen in 2013 for the Yearbook of Private Label Manufacturers Association (PLMA) shows that private brands increased their share in 18 of the 20 European countries analyzed, which led to them being the most popular and demanded by consumers.

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