how do private labels manage to display such low prices?

Each supermarket chain offers its own private label. They are called “Simple” at Carrefour or “Eco +” at Leclerc. Products at unbeatable prices: 60% cheaper on average than major brands. “It’s true that before, I took brands, and I realized that by taking even sub-brands, the products were just as good”says a client.

Faced with demand, supermarkets are promoting these products. To reduce the bill, private labels rely on simplified packaging. Another way to reduce costs: no ads, and a unique graphic on all packages. Last lever for brands: trim their margins. On this last subject, they do not communicate, but all reduce them to the maximum. Sometimes, to pull prices down, private labels can also play on ingredients, as explained by an engineer who, for 20 years, bought raw materials for large groups in the food industry.