Balea: From the smiled-at in-house brand to the benchmark for the industry
Once notorious as a cheap product, Balea is growing faster than many branded manufacturers. How did the drugstore chain dm manage to achieve this? The success factors - and the dangers.
German consumers purchase Balea products in their shopping carts nearly as often as every second month, according to market research firm Yougov. In recent years, the dm private label brand has undergone a remarkable transformation. No longer just a "white goods" seller offering low-priced shower gels and facial creams, Balea now encompasses Korean skincare products, medicated facial treatments, and a professional hair care line for salons.
Balea's rise to prominence has been recognized by consultants at Porsche Consulting, who have deemed it a "category-defining outlier" within the cosmetics industry. The question remains, however: what proportion of Balea's success can be attributed to effective branding, and what role does dm's wholesale power play? Meanwhile, competitors are scrutinizing the factors behind Balea's growth, as reported by the Handelsblatt.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
