With the cost of living rising, consumers in Germany are looking for ways to save on everyday purchases. An increasingly popular option is purchasing no-name products, also known as private labels. These often offer excellent value for money and are now widely available in all major supermarket and discount chain stores. But what advantages do these products really offer and how much can you save with them?
Why private labels are trendy
Private labels are products that are manufactured specifically for a specific supermarket or discount chain. These products often bear the private label label, but are often comparable to well-known brand products in terms of quality and composition. The main advantage is lower costs as private label brands do not require extensive marketing campaigns or expensive packaging designs. In addition, middlemen are bypassed, as many own brands are ordered directly from the supermarket chains.
According to Stiftung Warentest, consumers can save an average of up to 34 percent compared to branded products by purchasing own brands. These figures prove that no-name products represent a real alternative for price-conscious customers.
Quality that convinces
A common misconception is that cheap products are automatically inferior. However, numerous tests and experience reports show that the quality of own brands is often on a par with branded products. In fact, many private label products come from the same production facilities as branded items, but differ in packaging and marketing. A study by the SWR market check showed that if you have a shopping basket with 30 different products, you can save up to 40 percent by buying your own brands without having to compromise on quality.
Variety at Penny, Lidl, Aldi, REWE and EDEKA
The large German retail chains have massively expanded their own brands in recent years. Each chain offers a wide range of no-name products that cover almost all product groups.
• Penny: The “Penny” own brand offers basic foods, snacks and household goods at affordable prices.
• Lidl: Brands such as “Cien” (cosmetics) or “Freeway” (beverages) are among the discounter’s best-known own brands.
• Aldi: The Aldi brands “Gut Bio” or “Milsani” stand for organic products and dairy products at affordable prices.
• REWE: With “yes!” and “REWE Best Choice”, the chain covers both low-priced and higher-quality product segments.
• EDEKA: At EDEKA, the “Gut & Günstig” brand is synonymous with economy and quality.
Just by switching from branded products to own brands, households can save several hundred euros a year, as kaufda.de reports in an online article.
The role of sustainability
Another aspect that motivates many consumers to buy private labels is the increasing consideration of sustainability. Many supermarkets and discounters are increasingly relying on sustainable packaging and regional production for their own brands. Aldi and Lidl, for example, have announced that they will significantly increase the proportion of recyclable packaging in their own brands by 2025. Organic products also play an important role. Own brands such as “Gut Bio” (Aldi) or “REWE Bio” are not only cheaper than many organic brand products, but also meet high environmental standards.
D. Maier / editorial team finanzen.net
Image sources: Lisa S. / Shutterstock.com