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Private Labels: Retailers score with quality and price

More than 40 percent of all goods sold in Germany are private labels. The Federal Republic is thus in the upper midfield in Europe, directly followed by Austria. Private labels are therefore a guarantee for turnover and profit and it is impossible to imagine European trade without them.

The fact that establishing a private label is not a self-runner was shown in a study that we carried out together with the Rheinische Fachhochschule Cologne: Here, 29 percent of the participating companies confirmed that they had to withdraw a private label product again. The most important reasons for this: lack of customer acceptance or lack of profitability.
Consumers buy private labels when the price-quality ratio is convincing. This means that consumers do not want to compromise on quality, but at the same time they expect a clear price advantage compared to private label products. To ensure that profitability does not suffer despite this, procurement needs the right strategies and levers.
With our many years of expertise in advising retail companies, we are happy to support you in setting up and restructuring private labels.

Private Labels: four keys to successful procurement


Standardisation of specifications is a proven way to reduce costs. Standards reduce the number of variants, while the volume of remaining variants increases – the former reduces management effort, while the latter offers the possibility of bundling and thus negotiating favourable procurement prices. Standardisation is therefore an effective lever, especially for private label products.


Auctions – and especially online auctions – offer the opportunity to approach and qualify new suppliers in a resource-saving way. At the same time, an auction challenges competition among the participants. Therefore, auctions are a good solution to realise the favourable procurement prices that are essential for private labels.
Learn more about the design of online auctions here.

Supplier Management

The acceptance of private labels is crucially dependent on the quality of the products. Through professional supplier management, retail companies can benefit from the innovative power in their supply chain. In cooperation, retailers and suppliers can jointly improve established products as well as develop new offerings.


Professionally set up processes increase efficiency and significantly facilitate cooperation both within the company and with external parties. Optimising the profitability of private labels should therefore include process analysis and, if necessary, process optimisation.

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    What our clients say about us

    Maryne Lemvik, CEO Skanem AS

    „In an interactive sales training with a high degree of practical relevance, our sales staff learned how to approach negotiations like buyers. This change of perspective has decisively changed our sales negotiations. Thanks to INVERTO, our employees now feel better prepared and can draw on professional methods and tactics to achieve better negotiation results - a decisive step in the further development of our sales.“

    Ole Anton Gulsvik, CEO, Seven Seas

    „INVERTO conducted a detailed analysis of our international processes, and by introducing a new strategic approach for our procurement, it achieved substantial efficiency gains.“

    Patrick Juhl, Head of Procurement, Seven Seas

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    Thomas Pfeiffer, Head of Product Development at

    „Together with INVERTO, we have achieved a result that we did not think possible at the beginning of the project. The overall package of tender preparation, service provider workshops and rounds of negotiations at top management level has raised our hosting landscape to a new level of price performance. I thoroughly recommend working with INVERTO.“

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    Dr. Jürgen Wickl, Managing Director of Styria Media IT

    „By preparing a functional specification, we managed to advertise requirements in a tailored way. INVERTO’s orientation towards precise customer requirements and benchmarks as well as professional negotiations has contributed significantly to the success of this project. The close involvement of employees in this structured tender process is an additional bonus, and something which will benefit us in years to come.“

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    Siniša Mitrović, mag.oec., Managing director, Styria Tiskara Zagreb

    „Due to the flexibility of the team, we managed to receive additional offers from suppliers and hence increase competition between existing suppliers. Through centralization of our former pick-up locations in Croatia and Bosnia-Herzegovina we managed to reduce the operational work for our employees. Furthermore, this centralization led to a huge additional revenue from our waste paper business. The project work with INVERTO was very professional and made this great result possible.“

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    Marc Lamure, Director, Montagu Private Equity Associates LLP

    „INVERTO has helped D.O.R.C. with the professionalization of the procurement organization and accompanied the supplier negotiations for various products and services. By implementing new processes and working with procurement staff, the achieved savings enhance sustainability and will result in a more profitable organization.“

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    Erwan Quemener, Purchasing Director, Chassis Brakes International

    „INVERTO helped us in raising undreamed-of sources of savings in both direct material and indirect material areas. They did not only identify these potentials but they supported us in the implementation phase with a great professionalism.“

    Nick Gerrard, CFO, MID Essex Hospital Services NHS Trust

    „INVERTO’s market and product knowledge have been invaluable in helping the Trust deliver substantial cost savings in a short space of time. They have the ability to talk the clinicians language, optimise the procurement process and deliver a result the trust could not have achieved itself.“

    Bart Stubbe, Vice President of Purchasing LINPAC Group

    „INVERTO are assisting LINPAC since early 2008 in transitioning from a decentralised to a category purchasing structure, bringing sourcing expertise, skilled resources, technology and methodology to recognise, create and release value to the company.“

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