- Own label continues to challenge brands as cash-strapped shoppers cut the cost of their weekly shop.
- The UK has the greatest own-label market share at over 50%, with lines costing on average 30% less than brands.
- This reflects the greater sophistication offered by own-label, which has branched beyond ‘good’, ‘better’, ‘best’ to include tertiary or venture brands.
- However, share is static because brands continue to promote hard while own label has cut back.
- There have been gains for own label in Southern Europe where the economic climate has been at its harshest and it’s growing from a low base - but not in the North.
- Both here and abroad, there has been an increased focus by retailers on the quality and branding of own label. Retailers have eased back on mimicking brands and invested in their own innovation - responding to varying income levels, shopping modes and customer desire for true value.
- The upshot is that many shoppers now see own-label offerings as on a par with branded and as brands in their own right.
Tim Eales, SymphonyIRI