Balea: From the smiled-at in-house brand to the benchmark for the industry

In a remarkable rise from "white goods" to a brand synonymous with innovation, German retailer dm's own label, Balea, has seen its consumer base grow by 47 percent between June 2022 and June 2026. According to market research firm Yougov, nearly half of Germans consider purchasing Balea products. The brand has expanded beyond simple shower gels and face creams to include Korean skincare, medically enhanced facial treatments, and a professional hair care range.

Balea is now being hailed as a "category-defining outlier" by consulting firm Porsche Consulting. With a 44.2 percent market share, Balea outpaces traditional brands in nearly every Käuferpenetration category, with a 34 to 40 percent increase in consumer reach over the last four years. In comparison, the top five brands and retail brands in the same categories only reach around 23 percent of consumers.

So what sets Balea apart from its competitors? The success factors include a strong price-performance ratio, a loyal customer base, and a vibrant community. With a 73.4 percent repeat purchase rate, Balea customers are highly satisfied, and the brand has successfully transformed its image from being seen as a budget alternative to a premium product. The brand's direct connection to customers through its digital channels, such as the dm-App and social media platforms, has been crucial to this success.

Kerstin Erbe, responsible for dm's brands within the company, attributes Balea's rise to its pricing strategy, the development of a strong community, and the emotional connection it fosters with consumers. Unlike traditional brands that simply fulfill practical needs, Balea taps into the emotional aspect of shopping, making it more than just a rational choice.