This is the second article in a three-part series. If you missed it, article one explores how and why discounters are gaining share across the region.
Winning in discounters requires a fundamentally different approach. These channels cannot be treated as traditional modern trade. Simply replicating existing assortments at lower price points risks eroding both brand equity and total category value. Manufacturers need to assess where discounters create genuine incremental growth versus where they risk shifting shoppers from higher-value channels into lower-price environments.
While formats differ across markets – with private label-led models in the UAE and more brand-heavy assortments in Saudi Arabia –the strategic implication is the same: manufacturers must rethink how their portfolios play in value-driven environments.
What discounters mean for manufacturers
A distinct Price Pack Architecture (PPA) is essential to capture growth without damaging core positioning. The key question is not simply whether to list in discounters, but what to list: which pack, size,variant or price point can unlock new shoppers without cannibalizing existing value.
A strong discounter PPA should focus on:
- Dedicated ranges, pack formats or variants tailored to discounter missions
- Clear channel differentiation to protect relationships with key retailers
- Price and pack guardrails to avoid shifting too much value from supermarkets, hypermarkets or pharmacies
- Guardrails to avoid dilution of core brand equity
- Evidence on whether growth is coming from new shoppers, switching from other channels or trading down within the brand
Divesh Israni, Retailer & Shopper Director for Africa and Middle East at Worldpanel by Numerator, highlights: “Private label is growing faster than brands. When competing with private label, manufacturers need to decide whether to ride out the storm or compete head-to-head. Many grocery brands remain hugely important in consumers’ repertoires and continue to grow – which is why understanding the role of each product in each channel is essential”.
The challenge is not whether brands remain relevant –they do – but how they show up. Winning manufacturers are those who understand the role each SKU plays within each channel and adjust accordingly.
Duracell’s Simply range is a clear example: a targeted offering designed for discounters, delivering accessibility while protecting the premium positioning of the core range.
The same logic applies beyond batteries. In categories where brands are under pressure from private label, manufacturers need to decide whether to defend from outside the channel or participate selectively with the right SKU, pack or variant. The risk of not participating is missing a fast-growing pool of shoppers; the risk of participating without discipline is accelerating value erosion.
Discounters are forcing greater discipline in portfolio strategy. Success depends on precision — in pricing, pack design,variant choice and channel execution.
To understand how discounters are shaping your SKU performance and where your PPA should evolve, speak with our experts.
Divesh Israni
Retail & Shopper Director, Africa & Middle East
Worldpanel by Numerator
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