Mildberry brand building solutions

Paradigm Shift in Beauty Retail

The capability to offer a full-fledged brand with high-quality products within one's own chain retail brings the competition to a new level. As Taber Trade's experience in the cosmetic market shows, Russian private labels can easily outrun their international competitors provided that the brand, the product and the chain provide for the maximum synergy, meeting their consumer's needs and mood.  The traditional superiority of global players over domestic brands is becoming less and less evident.

We have been working with Taber Trade since 2013. Since then, Mildberry has been partnering with them in the development of private labels for the Podruzhka chain, which has more than 200 stores in Moscow and Saint Petersburg. During 4 years, Mildberry has developed four new brands (Sun Look, VOX, De.Co., Moritz), which range already has more than 80 SKU.

Creating a private label has its own specific features: it is very important to add some "categorical" characteristics to your design so that the brand, on the one hand, suited the chain's positioning, and on the other hand, was appealing to customers. This can be measured quite accurately — economic indicators show the most subtle fluctuations in loyalty. In Taber Trade's case, even the interim results surely talk for success.

In January-October 2017, the share of VOX was 62% of total sales in hair removal products. VOX has significantly outperformed such popular international brands as EVELINE, VEET, JOANNA, which have long been established among customers.

Another brand of the chain developed by Mildberry, Sun Look, has outrun global players such as LOREAL, GARNIER and TONYMOLY in the Sunscreen and Tanning Lotions category with 84% of total sales (according to the January-October 2017 data).

Figures are the best proof of how a strong visual image and quality can change consumer habits.

"We find a great pleasure in developing new projects and brands. Design plays a key role in the success of our brands — it is the visual image of a product which is the customer's first choice criterion. Thanks to the Mildberry team's work, each brand has its own identity. We have plans for many innovative and interesting products," said the Personal Care Manager Anastasia Samokhvalova on the long-term partnership with Mildberry.

Russia still has a partly disparaging attitude to private labels: unlike the European and US practices, where private labels have long been having a significant share in higher price segment sales, most Russian private labels keep mistakenly competing with cheaper products. Our projects for Taber Trade are the first of the kind in the cosmetic market. Positive trends and promising sales prove that the chosen path is a logical step towards the evolution of retail and a new attitude towards private labels.

In the context of a global trend for retail transformation, when companies focus on consumer experience and human needs, the one who reveals all the branding potential of the private label concept is the winner.