Among other products and components, CZ Electronics manufactures and distributes AIM TVs, sound and electronic products exclusively for Pick n Pay. AIM TVs, exclusive to PnP Hypermarkets and selected Supermarkets, were recently ranked the number 1 private label TV brand in South Africa, based on consumers’ choice to trust the brand.
So, why are South African consumers choosing private label brands? In a climate where budgets are constrained but consumers are still concerned about buying quality products, private label brands are simply the logical choice.
Adapting to the “new normal”
The COVID-19 pandemic has left both retailers and consumers in a position where they need to adapt to tougher economic times. Retailers have seen their profits affected and consumers have found themselves stretched financially.
During lockdown, sales declined for thousands of retailers throughout South Africa and the world – and particularly in sectors that dealt in “luxury” or premium products like electronics and audio-visual solutions. This is where private label products came to the rescue.
During lockdown, private label – or “house brand” – products have stepped in to boost retailers’ profits and to protect consumers’ pockets. As most private label products – like AIM for Pick n Pay – are manufactured locally, they are more affordable than imported products that are often loaded, not only with pricing synonymous with brand names, but also import duties.
As more consumers choose private label products like AIM, perceptions are changing. Local manufacturing processes have evolved to include stringent, international-level quality control measures that are driven to compete with global brands. And in a climate where job creation is of the utmost importance, companies like CZ Electronics are providing employment opportunities in manufacturing for previously disadvantaged people – largely black women.
Go proudly private
Private label products are helping retailers come back from the crunch of COVID-19. And consumers can confidently buy them knowing that they are not compromising on quality. With private label brands, retailers can offer their customers lower prices, driving much-needed turnover, even at margins that are beneficial to the retailer.
The private label boom signals progress in consumer consciousness. And quality remains a priority as more discerning consumers also turn to private label brands.
CZ Electronics – Bringing Tomorrow Home.