Retailers in Japan are expanding their lineups of private-label products in the hopes of attracting more customers struggling with soaring prices.
In April, prices of 4,225 items from major food manufacturers, including cooking oil, beer and processed meat products, will be raised, according to Teikoku Databank.
Private-label products, which retailers develop in partnership with manufacturers, can be sold at lower prices than those of name-brand products because of reduced advertising and promotion costs.
Aeon on Wednesday started selling three new products for ¥321 ($2.20) each, including a frozen bento boxed meal containing peperoncino pasta and a hamburger steak with tomato sauce. The retail giant will cut prices of 75 items in its Topvalu private-brand series by some 4% to 21% from Wednesday. The price of its 900-gram bottled cooking oil will fall to ¥246 from ¥257.
Supermarket chain Ito-Yokado has increased the number of its Seven the Price private-label products by 10%. The line include a ¥321 package of 20 gyoza dumplings made of leftover cabbage and gyoza skins.
For its 750-g dashi soup stock, sold at ¥645, the retailer simplified the packaging to cut costs and lower the retail price. Such products are “10 to 20% cheaper than name-brand products,” an Ito-Yokado official said.
Convenience store operator Lawson renewed its own-brand series for the first time in five years, aiming to popularize the products including onigiri rice balls and desserts by redesigning their packaging.
“When the consumer price index rises, the proportion of private-label products (purchased by consumers) also increases,” said a Lawson official. “Expectations for own-brand products will definitely grow.”
