DIXY: producers of Moscow region help customers save money

Responding to customer sensitivity to the price factor, DIXY is developing the area of its private labels – most frequently, this is what the customers choose as a money-saving alternative to traditional shopping options. The chain produces goods in the medium pricing segment and in the “first price” category, including in cooperation with partners from around Moscow. Today, 32 Moscow Oblast companies produce over 100 product names, including bread, meat and dairy products, sugar, groats, crackers, drinking water, alcoholic beverages and canned goods.

DIXY private label goods are equal in quality to the similar brands, yet their cost, depending on the category, is lower: by up to 20 percent concerning bread and other baked goods; by up to 30 percent for canned vegetables; and by up to 40 percent for alcoholic beverages. Maintenance of the consumer basket value is made possible by optimized transportation costs, possible simplification of the process to forecast commodity stocks, and marketing-related advancement.

The chain is expanding its pool of producers from Moscow Oblast: over the past few months, contracts have been signed for the production of Krakow-style sausage, ready-made salads and D brand kvass with producers from Ramenskoye and Orekhovo-Zuyevo.

“In Moscow Oblast, there are enough producers capable of offering high-quality goods in volumes required by a major chain and meeting delivery deadlines, and we are prepared to render support even to minor producers; for them, cooperation within the effort to produce private label goods is a chance to really place their products on the shelves of a federal-level retailer,” says Ekaterina Kumanina, Public Relations and Government Affairs Director of DIXY Group.

The Minister of consumer market and services of Moscow region Vladimir Posazhennikov: "One of the actual trends is that retail develops private brands. Technology in this case is simple: retailer on tender basis chooses the producers, controls all stages of production and delivery of products. Exhibiting at its trade shelf the private label products, the company-the seller guarantees the product quality. The prices are of high importance for the customer – private label product is cheaper than the equivalent from a leader of the category.

For the Ministry the expansion on retail shelves of products from our regional manufacturers is especially important. Therefore, this example – as DIXY, which is developing its private label in partnership with the enterprises of Moscow region – is absolutely positive! I'd even stepped up my assessment: this is the right marketing decision. Our regional customers actually give the highest preference to private, suburban producers. The products manufactured in the Moscow region, a priori, are of high consumer trust and even affection".