Own labels are pushing big brands out
Remember when own brand labelled products were the ‘poor man’s; choice? Well the tables have certainly been turned. We have become canny consumers over the years, where value for money and quality are higher on our lists than brand names. Only a few years ago you’d see the BMW’s and Mercs parked out of sight from the local Aldi or Lidl, now they are proudly parked in the supermarket carparks with their boots full of fairly priced, quality items that have made the said supermarkets a true success. 2014/2015 marks a significant and lasting shift in shopper approach that is giving brands an increasingly hard run for their money.
The social stigma that was once identified with own label brands no longer exists, this seismic change has happened in a short space of time and is set to continue as the smart shopping habits become further rooted in the nation’s mind.
Nielsen recently carried out research into own label versus big brand and found that own labels account for 54% of Great Britain’s supermarket sales, around 3x the global average. 71% of Britons say quality has improved over time and 50% would buy more own brands if the variety of products increased. IRi reports that after stabilising for numerous years own label brands have shown further growth of +0.2pt in value share and +0.3pt in unit share. To read more about the statistics click here.
IRi noted in the report that premium ranges are closing the price gap with their branded competition, signifying there is a lot to play for in cold hard pence.
Aldi and Lidl look to have had a head start with their premium new product developments and clever advert placement such as television putting them in good stead. Consumers are definitely in for a treat, since there is no doubt the big supermarkets such as Tesco and Sainsbury’s are not far behind in new product stakes. This year is the year for own labels; it’s a sector worth watching!