In the dynamic retail sector, where price pressure and consumer loyalty are key factors, the private label strategy is a powerful tool for differentiation. dm drogerie markt is one of the most successful examples in Europe of how own brands and private labels can become drivers of growth, profitability and trust.

DM drogerie markt has been present on the Macedonian market since 2012, and since then it has been a member of the family of 200 LARGEST AND SUCCESSFUL companies in North Macedonia.

But the story of this global drugstore begins in 1973, when the first store opened in Karlsruhe, Germany. Today, the company is a giant with over 4,000 stores in about 12-13 countries across Europe.

The company is led by a strategy of continuous expansion, strong private brands and, most recently, a digital sales strategy.

From its beginnings to the present day, dm drogerie markt has focused on slow growth, without undertaking fast, high-risk operations, thus focusing on a sustainable market presence rather than quick profits.

Own brands as a pillar of strategy

Instead of relying exclusively on global brands, dm systematically develops and promotes its own product lines, such as Balea, Alverde, Denkmit and Babylove.

These brands are not positioned as a "cheaper alternative", but as products with clearly defined quality, sustainability and transparency.

By doing so, dm manages to build its own loyal consumer base who associate value directly with the company, not just with the manufacturer.

The products that the company offers for sale have a clear goal, purpose, and are of proven quality, which in itself enables the creation of loyal consumers all over the world.

The private label sales model enables:

• better quality control,
• cost optimization,
• flexibility in pricing,
• higher margins compared to classic trade with third-party brands.

By directly managing product development and specifications, dm creates a unique offering that cannot be easily copied by the competition.

Sustainability as a competitive differentiator

Particularly important is the segment of natural and sustainable cosmetics, where Alverde positions itself as an affordable "green" and ecological cosmetics brand, produced from natural materials .

This allows the company to respond to growing consumer demands for environmentally friendly and ethical products, without significantly increasing the price.

Impact on financial results

The private label strategy has a direct impact on profitability. Higher margins and stable demand allow for:

• better management of inflationary pressures,
• maintaining competitive prices,
• investing in network expansion and store modernization.

In conditions of increased competition in retail sales in North Macedonia, this model ensures long-term sustainability and stable growth.

dm with stable growth in 2024 as well

In 2024, dm ranked 105th on the ranking of the largest Macedonian companies and 190th on the ranking of the most successful companies.

The company achieved total revenue of 3,005,998,745 denars and profit before tax of 125,440,715 denars.

Expressed in percentage terms, the company achieved a growth in total revenues of 26.12% compared to the previous year and a growth in profit before tax of 17.60%.

In accordance with the increased financial parameters, the company, compared to the previous year, climbed 14 places higher on the ranking list of the most successful and 8 places higher on the ranking list of the largest Macedonian companies.

Additionally, in a period of one year, the company significantly increased the average number of employees from 206 to 262, which is a percentage increase of about 25 % compared to the previous year.

The increase in the number of employees is also due to the expansion of the chain of stores throughout North Macedonia, after the company increased its number of sales outlets to 24.

In 2024, dm was present in North Macedonia with 24 sales outlets, of which 14 were in Skopje, one sales outlet each in Tetovo, Veles, Kumanovo, Bitola, Strumica, Gostivar, Struga and Ohrid, and 2 sales outlets in Shtip.

DM's private label strategy is not just a commercial move, but a long-term business philosophy.

By carefully building its own brands, the company creates a competitive advantage based on trust, quality, and a controlled value proposition.

It is this combination of strategy, discipline and innovation that positions dm as a modern and stable retail leader, capable of responding to new consumer trends and economic challenges.