More shoppers choosing supermarket own-brands

Supermarket own-label brands have become increasingly popular among consumers, accounting for 54 per cent of supermarket grocery sales, according to new research.

The Global Survey of Private Label, conducted by Nielsen, polled over 30,000 respondents spanning 60 countries and found that 71 per cent of UK consumers believe the quality of own-brand labels has improved in recent years - in contrast to 62 per cent of Europeans as a whole.

A further 50 per cent of UK respondents admitted they would purchase more own-brand produce if there was a greater variety on offer, while 44 per cent would be prepared to spend the same amount or more for an own-label brand if they like it.

Some 60 per cent of shoppers said the quality of own-labels is just as good as that of name brands, marking an increase of almost 100 per cent from consumers who shared this view four years ago.

This contrasts with a mere 26 per cent of respondents who, when taking quality into consideration, don't think own-brand labels make the cut.

Mike Watkins, head of retailer and business insight at Nielsen, said: "The perception of own-brand products has improved dramatically in recent years.

"As with manufacturer brands, retailers have, over time, successfully built equity into their own-brand products by investing in product innovation, further developing ranges and increasing marketing activity."

The research sparks good news for small and medium-sized enterprises (SMEs) that are competing against bigger, more established brands in what can only be described as a saturated market.

Innovative marketing techniques, such as in-store displays, should therefore be considered by SMEs as this will attract more consumers to their brand, make a product appear more desirable than its competitors and heighten its value.

Bespoke free-standing displays are particularly beneficial because they position the target consumer and give a product the exposure needed to generate higher sales.


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