More DIA, more success
DIA was the first retailer to launch its private label in Spain almost 30 years ago. Since then the group has successfully exported the concept to the markets it has successively entered. Today, its private label brand is a lynchpin of the group’s business strategy. DIA’s commitment to its brand is intrinsic to its raison d’être. To this end DIA painstakingly minds the development and distribution of the products bearing its logo in order to ensure that they translate into a valuable product proposition.
In 2012, 57% of the products on sale in DIA’s stores worldwide was part of the private label range, which runs to over 7,500 SKUs. Sales of DIA brand products represented more than 40% of total revenue in 2012, which translates into over €5 billion in absolute terms.
International expansion of the DIA brand
DIA has successfully exported its own brand, achieving significant rates of penetration in markets with slim experience with private labels. This is true of China, where retail brands account for just 1.5% of the overall market, while DIA’s brand represents 10.8% of its sales in China.
DIA has successfully exported its own brand to markets with scant experience with private labels
In other fast-growing markets where DIA operates, private labels barely surpass one-tenth of the market in the best case scenario compared to sales penetration by the DIA brand of 31.3% in Turkey, 34.8% in Brazil and 38.7% in Argentina. The experience in these last two markets is particularly noteworthy: despite being highly brand-focused markets, the DIA brand has met with great success, consolidating its position as the best-selling private label.
In developed economies, where private labels accounts for over one-third of the market, the DIA brand boasts above average penetration rates: 54.9% in Spain, 43.7% in Portugal, with France emerging as the market presenting the highest penetration rate: 61.6% of DIA’s sales.
The customer pledge
As part of its commitment to offering products that provide optimal value for money, DIA has gone to lengths to absorb the significant inflation affecting raw materials in recent times to prevent higher costs from affecting its customers.
The customer pledge embedded in the DIA brand has translated into the launch of novel product ranges tailored to customer requirements, such as the pet food range (30 new SKUs), the baby product range and the family-pack range (50 SKUs implying higher savings), which are targeted at DIA Maxi shoppers. On the healthcare front, this pledge has also shaped innovation, giving rise to the development of the BIO product range and reduced salt and sugar content in certain DIA products such as soft drinks (for which sugar content has been slashed by up to 30% in Spain and France) and bread.
The customer commitment underpinning the DIA brand is also evident in the strategic focus on perishables which command a more prominent presence in the range of products sold and on display in the new store models: DIA Market, DIA Maxi and, most notably, DIA Fresh. This strategy is reinforced by the logistics and quality control effort being made to offer shoppers meat, fish, fruit and vegetables that are as fresh as possible without renouncing competitive prices.
Another important development, once again the result of remaining permanently in contact with consumers, is the addition of the supplier’s name on the packaging of all DIA brand products. DIA customers in all of the group’s operating markets will benefit from this transparent labelling initiative.
Otro cambio importante, consecuencia de nuestro diálogo permanente con los consumidores, es la incorporación del nombre del fabricante en el etiquetado de todos los productos de marca DIA. Los clientes de todos los países en los que opera DIA se podrán beneficiar de esta iniciativa de transparencia informativa.
As part of the group’s strategic commitment to sustainable and environmentally-friendly development, DIA brand product packaging is made from environmentally-friendly materials. To this end, the company has reduced the amount of cardboard in its packaging (yogurt packs) and made its plastic bottles lighter weight.