With a 55% enhance in personal label gross sales, Raia Drogasil launches its sixth, probably the most targeted on ESG
- November 8, 2022
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The unit has Needs as the main brand in the portfolio and is responsible for more than 50% of sales
THE Drogasil Streak is launching the Natz brand and expanding its private label strategy, a business unit that should end 2022 with a 55% growth compared to 2021. The novelty hits the market with a portfolio of 20 natural products, including essential oils , probiotics, propolis and honey throat sprays.
With prices ranging from R$10 reais to R$100 reais, Natz is the brand most aligned with the company’s sustainability practices. The production chain uses 100% recycled paper, monomaterials – with highly recyclable packaging -, circular economy, suppliers use renewable energy and obtained the Eureciclo recycling seal.
“Today, brands in the market are more specialized and focused on some segments such as fibers or propolis, and we understand that it would make sense to have a brand that was known and could operate in different product categories, always using natural ingredients and also looking at the part of sustainability”, says Renata Mascarenhas, director of Private Brands at RD.
Natz is also part of Raia Drogasil’s proposal to reach 2030 as the company that most contributes to people’s integral health. Even so, despite already having a portfolio of 20 products, new ones are expected to begin to be added throughout 2023.
How the private label model works
The company’s main brand is Needs, also the first to be launched in 2010. It accounts for more than 65% of the 800 skus that Raia Drogasil has, adding up to all five brands of the group and represents more than 50% of total revenue. of the business unit.
It was born offering more basic products, such as first-aid items, serum and cotton, and today it includes everything from pregnancy tests to sunscreens, diapers and soaps. In 2019, it also gained another front of action with the launch of the vegan line, the Needs by Vegan.
Faced with the evolution of the first brand, the company expanded its business model over the years and entered other categories that have strength in the pharmacy environment. Usually, the products reach the shelves with prices between 15% and 20% lower than the reference brands in the market.
Nutrigood, functional and healthy products; Raia/Drogasil, vitamins and supplements with segmented profiles, Nutrigood, functional and healthy products, Triss, beauty accessories, Caretech, prevention and health monitoring, and Le Pop, hygiene and beauty, arrived following this movement.
“We are growing more than the company and we have gained share. In whey and cotton, for example, we have more than 50%”, says Mascarenhas. The data refer to sales on Raia Drogasil’s own channels – pharmacies, apps and websites -, which concentrate sales of private labels.
The company has few items being marketed outside the network and the focus is to remain restricted to its own ecosystem.
“We manage to have a higher price attractiveness, we manage to focus a lot on products that are from the pharmacy universe and we believe that it has a lot of growth potential in category expansion”, says the executive. One of the strategies, according to her, is to enter into less ‘commoditized’ categories.
Currently, Raia Drogasil has pharmacies as its main sales channel and ended the third quarter with 2,620 units. Of the BRL 8 billion in gross revenue in the period, an increase of 22.3% compared to a similar period in 2021, only BRL 886.1 million came from digital.
Who is responsible for production
The model was built with suppliers, responsible for the manufacture of all products of the brands. Currently, there are more than 90 companies that work together with the team of 35 professionals from the business unit and help to place the items on the shelves.
Internally, Raia Drogasil maps market trends and demands, idealizes the desired products and benefits. From there, it looks for potential manufacturers who are assigned the mission of transforming the project into formulas. For Natz, the company brought together five suppliers.