Dixy Group Launches Its Private Label “Д”

Earlier this week DIXY Group, one of Russia’s leading retailers of foods, is announcing the launch of its new Private Brand “Д”.

For those of you who may be unfamiliar witht the Dixy Group:
The first DIXY store opened in 1999 in Moscow and, after the period of intense organic development and purchase of Victoria Group in June, 2011, as of July 31, 2012, the Group operated 1,284 stores, including 1045 DIXY neighborhood stores, 183 stores under the “Kvartal”, “Deshevo”, “Semeynaya Kopilka” brands, 26 Victoria supermarkets, 18 MEGAMART (compact hypermarket) stores, 11 MINIMART supermarket stores and 1 CASH (cash&carry) store.

The Company operates in three Federal Districts of Russia: Central, Northwest, Urals, and in Kaliningrad region.

As of July 31, 2012, the Company had a total of 445,610 square meters of selling space. The Company is the third largest among Russian national retail operators in the food retail market by revenue, selling area and number of stores. The Company employs over 37,000 people.

In 2011, DIXY Group’s total revenue amounted to RUR 122 billion (USD 4 bln). The Russian business magazine Expert rates DIXY Group as one of the Top-100 largest Russian companies.

The new Private Brand is grounded in DIXY’s strategic positioning as being “Simple. Nearby. Neighborly.” This means that the company holds its new brand of products to higher quality and consumer standards, but offers them at prices that should be an average of 20% lower than those of comparable brand-name goods.

Brand “Д” goods are of identical or higher quality than popular brands: each product is selected using numerous “blind” focus groups comprising more than 100 consumers who evaluate the product based solely on quality and without being affected by factors like brand recognition or prestige. As a result, more than 50% of focus group participants rate the selected products as being of equal or higher quality than the products of well-known brands. Consistently high quality is to be assured through regular product testing and ensuring that production procedures are followed. Each producer will undergo inspection for compliance with high quality standards and product consistency, while relationships with suppliers are built on the principles of long-term strategic partnership.

Package design developed in partnership with Neo Group (Israel) and Quantum Graphics (Russia) features a unified, modern style brought together by the Cyrillic letter “Д” with an orange circle around it, which is a recognizable part of the company’s logo.

Danny Perekalsky, DIXY Group marketing director, explained:

“Developing a new brand concept and package design, together with selecting the right producers and suppliers, took an entire year. This shows how seriously we approached this project. We believe that our work here will provide an additional boost to customer loyalty.”

The first products to be sold at retail stores under the new brand name were sunflower and pumpkin seeds, nuts, and dried fruit, as well as baby wipes. There are plans for more than 40 kinds of products and goods to be sold under the “Д” brand.

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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.