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PPIH to launch low-cost PB in June, water from 40 yen

PPIH to launch low-cost PB in June, water from 40 yen

Black-and-white packaging cuts costs

PAN PACIFIC INTERNATIONAL HOLDINGS (PPIH), which operates Don Quijote stores, will launch a low-cost private brand (PB) in June. It has priced 500 ml water at 40 yen, setting it in the lowest price range even compared with PBs from rival companies.

26 items to roll out sequentially

The company will gradually introduce its PB 'EDRP (Everyday Real Price),' focused on daily necessities, from June. The lineup will include 26 items such as box tissues (five boxes) for 196 yen, 500 ml bottled water for 40 yen and 1 kg of spaghetti for 214 yen, making them up to about 40% cheaper than competing products such as Aeon's low-cost PB 'Topvalu Best Price.'

In addition to using black-and-white packaging to cut printing costs, PPIH also incorporated logistics revisions and mass-production benefits. Compared with its existing PBs such as 'Jounetsu Kakaku,' it lowered costs by as much as about 7%. PPIH says its products will be the cheapest level except for sale items, and even compared with major retailers' low-cost PBs such as those from Aeon and Seven & i Holdings Co, they are among the lowest priced.

To be sold at 670 stores nationwide

The packaging will be limited to the minimum necessary information, such as a logo based on the yen symbol and the product name. With concerns rising over shortages of naphtha and ink as the Middle East situation worsens, PPIH also aims to review packaging materials. The products will be sold at about 670 stores nationwide, including Don Quijote, and Apita, Piago and Robin Hood under the UNY umbrella. This is the first time PPIH has rolled out a companywide PB.

As price rises spread amid worsening conditions in the Middle East, retailers are also moving to review containers and packaging. Ito-Yokado has changed the plastic lids on containers used for meat and sashimi to wrap film since late May. FamilyMart will make brand logos black and white on packaging for sandwiches and other items from this summer.

Aeon is also pushing ahead with switching PB packaging materials to ones that use less plastic. By ending the use of conventional tray packaging for its 'crab-flavored kamaboko flakes,' it cut plastic use by about 43% and kept the selling price at 192 yen without changing the volume.

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