Russian retailers trying to save on private label packaging, will still rise though - manufacturer

MOSCOW. July 15 (Interfax) - Russian retailers are trying to save on the packaging of goods under their own brands by simplifying it, the Central Bank of Russia (CBR) said in its Regional Economy report.

The CBR in the report refers to a large manufacturer of plastic packaging that has announced an increase in demand for its products, particularly from retail chains for their own brands.

"Meantime, most important is the low-price factor, so that customers save on design, and abandon multi-color and complex marketing solutions," the CBR said.

The company also believes that further increases in costs for packaging is inevitable, given that special additives, base polymers, and logistics have risen significantly in price.

The report also notes that consumer activity in most Russian regions remained restrained in May-June. Households reduced spending on non-food items. The manufacturers of consumer goods and retailers noted a shift in demand to lower priced segments.