TOKYO - As inflation continues to strain household budgets and companies across Japan grapple with the so-called "ink shock" driven by rising printing and packaging costs linked to instability in the Middle East, the company behind Don Quijote has unveiled a new private-brand strategy aimed at making everyday necessities more affordable.
Businesses have responded in various ways, with Calbee switching to monochrome packaging and Kagome reducing the number of tomato illustrations on its products to cut costs.
Joining that trend, the PPIH Group, which operates Don Quijote and other retail chains, announced a new private-brand range on June 3rd featuring monochrome packaging across its product lineup.
"The brand was developed not simply to offer low prices, but to pursue what truly necessary affordability means for our customers' daily lives," said Yuto Nomura of PPIH's Marketing Strategy Headquarters.
The concept focuses on providing essential everyday items at what the company describes as "genuinely necessary prices."
Among the products, a five-pack of boxed tissues is priced at 178 yen before tax, while a 500-milliliter bottle of water sells for 37 yen before tax.
The new lineup includes 26 household and daily-use products, all packaged in black-and-white designs. For food products, the company says production costs have been reduced by as much as 7% compared with existing private-brand items.
The savings extend beyond simpler packaging. Toilet paper has been wound more compactly to reduce transportation expenses, while tea bottles use thinner plastic containers to lower manufacturing costs.
The company also reviewed product dimensions to improve logistics efficiency and leveraged large-scale production to achieve further savings.
With uncertainty surrounding the Middle East situation continuing, PPIH said it is placing particular emphasis on anticipating future cost increases and reducing expenses in advance.
"The design emerged through repeated trial and error as one of many cost-cutting measures we explored," Nomura said. "Rather than simply offering cheaper products, we wanted customers to understand why they are cheaper. We believe this brand provides a new answer for private-brand products. Going forward, we will continue to identify additional customer needs and consider future developments accordingly."
Source: FNN
