4.4New and more specialised products
DIA is beefing up its product range to make its customers’ everyday shops easier. Fulfilling its service mission, in 2015, it continued to provide its customers with an extensive catalogue of name brand products, while adding to its private-label portfolio with more and increasingly specialised products in parallel. At year-end, the group was selling 7,700 SKUs between its DIA, Bonté, Basic Cosmetics, Baby Smile, Junior Smile, AS and Delicious private-label brands.
In 2015, DIA extended and deepened its range in a bid to be perceived as a genuine specialist in a broad number of categories and to provide end-to-end coverage of new customer profiles.
DIA has gone from being a single-brand company in 2013, with DIA as its insignia, to operating a multi-brand model with a variety of specialist trademarks and brands. At year-end, DIA was selling seven private-label brands.
The DIA brand
With a history dating back over 30 years, the DIA brand continued to demonstrate its ability to accommodate innovation and drive the group’s revenue.
The DIA brand is present in all five of the group’s operating markets, accounting for a high percentage of total product sales in all instances. In Spain, DIA-branded product sales accounted for 53% of the total; this percentage increases to 54% in Portugal. In the emerging markets, where private labels are still less entrenched, penetration of DIA-branded product sales was nevertheless very substantial: 37% in Argentina, 35% in Brazil and 4% in China.
DIA brand by market
The DIA brand’s success is attributable to its stellar value for money, underpinned by a stringent cost-effectiveness policy and exhaustive control of product manufacturing and distribution processes.
In 2015, the company continued to add to its range, in line with its strategy of permanently adapting to its customers’ shopping needs by constantly innovating.
Delicious, development of a premium brand
2015 was marked by development of the Delicious brand, the premium private-label brand conceived of in December 2014 to satisfy the demands of more discerning palates. DIA continued to add new products to this range over the course of the year. It currently encompasses 140 SKUs which meet the brand’s defined hallmarks: exclusivity, premium quality, gourmet character and compelling pricing.
Carefully presented in packaging featuring black and gold ink, the Delicious products are presented in their own display cases in the group’s stores. In this section customers can find items as varied as chocolate, paté or special condiments which complement other delicatessen products found in the fridge and freezer aisles (ice creams, seafood, etc.)
The Delicious brand saw its range increase to 140 SKUs which meet the brand’s hallmarks: exclusivity, premium quality, gourmet character and compelling pricing
As with the other private-label products, Delicious-branded products are developed to the most stringent standards of quality; however, they must also contain some form of exclusive ingredient or be handmade and they must achieve a minimum rating to ensure optimal customer perception.
It is worth singling out the strong performance by Delicious in 2015: in existence for scantly one year, it generated €34 million in sales.
Personal care, beauty and health products
In 2015, DIA continued to develop and expand the scope of its personal care brands, whose natural home is in the Clarel stores, although they can increasingly be found on the shelves of group’s other establishments.
This is true of the Bonté (flagship personal care and hygiene private label), Baby Smile & Junior Smile (devoted to infant and toddler care, respectively) and Basic Cosmetics (make-up, facial cosmetics and nail polish) brands. In the pet food and care segment, DIA sells under the AS brand.
In 2015, the company launched 450 new Bonté SKUs, 110 Baby Smile & Junior Smile SKUs and over 60 AS SKUs. The thrust of the work performed on the Basics line was renewal of the logo and updating of the image, emphasising the draw of cosmetics.
The Bonté brand, created in 2013, is the flagship private label brand in the group’s Clarel stores. It is a personal care and hygiene product range targeted at the whole family and catering to multiple customer needs. With over 700 SKUs, it encompasses eight categories associated with eight types of usage: Bonté Je t’aime (more unique), Bonté Everyday (basics), Bonté Toujours Belle (high end), Bonté Professional (higher-spec), Bonté Soleil (sun protection), Bonté Homme (men’s line), Bonté Naturals (organic) and Bonté MED (OTC pharmacy).
In developing its Bonté brand, DIA works with prestigious, expert manufacturers for third parties capable of upholding the most stringent quality standards. When any new cosmetics product is launched, it must meet the ‘cosmetic dossier ‘ specifications imposed under European Union legislation.
To provide even greater assurances regarding product quality, the company works with expert laboratories, engaged as third-party auditors, tasked with checking compliance with these requirements.
The Bonté brand has been present in all of the group’s markets since 2015.
Commitment to name brands
The DIA Group’s stores are characterised by a balanced mix of private-label and name brands tailored to consumer interests and tastes.
Innovation at entrenched formats and the rollout of new ones has driven the development and presence of these name brands, just as it has driven development of its own private labels; ongoing fine-tuning of this mix is the best way of introducing product innovation across the group’s stores.
The creation of La Plaza de DIA, development of DIA Maxi–both initiatives marked by the introduction of a broad range of fresh products, wines and spirits–and expansion of Clarel–the group’s HPC retailer–drove the percentage of purchases from name brand manufacturers 26% higher year-on-year, from 48% of the total in 2014 to 53% in 2015. Group-wide this percentage increased by 16% from 54% of the total in 2014 to 57% in 2015.
This trend in manufacturer purchases translated into growth of 33% in the number of SKUs DIA worked with in Spain, from 18,100 in 2014 to 24,200 in 2015. Group-wide, the number of name brand SKUs rose by 18% from 38,400 to 45,600.