Organic Private Labels as Sources of Competitive Advantage-The Case of International Retailers Operating on the Polish Market

The main aim of this study was to determine how chains of modern international retailers can achieve a competitive advantage (CA) by introducing private labels (PLs) in the organic category and can, in turn, stimulate the consumption of food produced with respect to sustainability principles. The research was conducted with the use of a qualitative approach and involved two steps. First, in order to select retailers with organic private labels (OPLs) and producers delivering products under OPLs, in-depth semistructured interviews were conducted with the representatives of management boards of 17 enterprises. Second, in order to analyze the assortment-based competitive advantage of the OPLs in depth, 8 enterprises were analyzed. In order to explore the price-related competitive advantage, three products offered under PLs, organic PLs, producer brands, and imported brands were selected for subsequent analysis. For retail chains, it was found that the introduction of OPLs is the source of CA via six contributors, namely, price, range of assortment, type of PLs, image of the retailer, sustainability and specific process, and product-related attributes of organic food. Extension of offers with organic private labels makes it easier for consumers to buy organic food at more affordable prices and follow the principles of proper nutrition and a sustainable diet with low environmental impact. At the same time, the international retailers can position themselves as chains contributing to more sustainable consumption.