More and more premium products under their own brand are appearing in Russian retail. A survey of Russian top managers showed that stores and manufacturers are betting on the development of their brands, NielsenIQ analysts found. In addition, in 2023, the focus of manufacturers has shifted to working with the most profitable categories; almost a quarter of companies plan to develop in the premium segment. On Monday, a new player entered the market, Yandex Shop (MOEX: YNDX) launched a line called “Store 100”.
It includes more expensive products than the classic assortment of the service. For example, rare cheeses and unusual desserts. What are the prospects for this project? Senior analyst at Data Insight Olga Pashkova notes that there are already successful examples on the Russian market: “Retailers are now very actively launching their own brands. Given the departure of foreign brands, it is noticeable that stores are trying to replace them. If previously private brands had the image of being the cheapest products, now completely different lines are being launched, including expensive ones. Therefore, the prospects are very favorable.
For consumers, store own brands are a good alternative to completely unknown brands that are entering the market. There is a clear example of “Vkusville”, everyone knows it, and, in principle, the level of products there is slightly above average, it is very successful both offline and online. "Azbuka Vkusa" launches its own brands and huge production. All this is in demand among buyers and is actively developing.”
Lavka's premium products have special packaging generated by the neural network. The basis for the image was an association with a specific product, which artificial intelligence designed in a specific artistic style.
Visual design is very important for attracting the right segment of buyers, says consumer behavior and neuromarketing specialist Alexey Murazanov: “Among people with a stable high income, the likelihood that they will buy gourmet products through marketplaces, of course, exists. But, as a rule, demonstrative impulse consumption requires an offline format.
When it comes to packaging design, it is closer to pragmatic consumption. It is rather functionalism with iconic or indexical coding. I can conclude that for hedonists this visual solution is too boring, for pragmatists it will probably be fine. That is, for those who have a fairly conscious and pragmatic consumption, but there are very few of them on the market, this is somewhere around 5-7% of buyers.
So from an aesthetic point of view, I guess they made a mistake and created a design for a lower segment. If we look at the packaging design of French, Austrian or German cheese factories, then the aesthetics there, of course, are a little different. But competition on price is possible if this cheese is cheaper. Saving energy and time can also play into Yandex’s hands; if the product is delivered directly into your hands, this can really be a competitive advantage.”
In total, a hundred items of goods will be sold under the “Lavka 100” brand. Some of them are already available in “Shops” in Moscow and St. Petersburg.
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