Anne Bruce
Despite their dramatic growth in the last few years, the supermarkets’ premium own label ranges don’t satisfy high consumer expectations, according to IGD research.
The report, Shopper Insight on Retailer Brands, reveals that a fifth of shoppers who buy premium own label would buy more products if they tasted better, and 18% would buy them if they were better quality.
The study said there was also a gap between consumer’s high expectations of quality and taste, and what they were prepared to pay for premium own label.
Shoppers who bought premium lines had a more positive image of own label than
the average shopper. However, they still expected luxury own labels to be a value option, compared to manufacturers’ brands. Overall, 41% of shoppers who buy premium own labels said they bought them because they were cheaper than the branded equivalent and 15% said they would buy more if the ranges were cheaper.
The IGD report stated that although most major retailers had a premium own label offer, premium ranges only accounted for 20% of own label sales.
Value own label ranges continued to account for the bulk of own label sales - at some 39%.
The report added: “There are higher taste and quality expectations of premium products, which is something that retailers will have to meet if these are to continue to be a success in the future.”
Shoppers who took part in the IGD survey of attitudes to own label said that in categories such as healthcare and confectionery they would only consider buying an established brand. One analyst suggested that premium own label was successful in categories where there was no branded equivalent, such as the ready meals sector.
It would never make real headway in areas such as boxed confectionery, washing powder, petfood and shampoo, said the analyst. “Where the branded product dominates, the consumer will be reluctant to buy a naff own brand, even if it is a bit cheaper. There will always be low penetration in those areas.”
IGD chief executive Joanne Denney-Finch said: “While some think of retailer brands as strong brands in their own right, others instinctively think only of economy brands.”
Despite their dramatic growth in the last few years, the supermarkets’ premium own label ranges don’t satisfy high consumer expectations, according to IGD research.
The report, Shopper Insight on Retailer Brands, reveals that a fifth of shoppers who buy premium own label would buy more products if they tasted better, and 18% would buy them if they were better quality.
The study said there was also a gap between consumer’s high expectations of quality and taste, and what they were prepared to pay for premium own label.
Shoppers who bought premium lines had a more positive image of own label than
the average shopper. However, they still expected luxury own labels to be a value option, compared to manufacturers’ brands. Overall, 41% of shoppers who buy premium own labels said they bought them because they were cheaper than the branded equivalent and 15% said they would buy more if the ranges were cheaper.
The IGD report stated that although most major retailers had a premium own label offer, premium ranges only accounted for 20% of own label sales.
Value own label ranges continued to account for the bulk of own label sales - at some 39%.
The report added: “There are higher taste and quality expectations of premium products, which is something that retailers will have to meet if these are to continue to be a success in the future.”
Shoppers who took part in the IGD survey of attitudes to own label said that in categories such as healthcare and confectionery they would only consider buying an established brand. One analyst suggested that premium own label was successful in categories where there was no branded equivalent, such as the ready meals sector.
It would never make real headway in areas such as boxed confectionery, washing powder, petfood and shampoo, said the analyst. “Where the branded product dominates, the consumer will be reluctant to buy a naff own brand, even if it is a bit cheaper. There will always be low penetration in those areas.”
IGD chief executive Joanne Denney-Finch said: “While some think of retailer brands as strong brands in their own right, others instinctively think only of economy brands.”
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