The Nielsen Global Survey of Private Label found that own brand products accounted for 54% of UK supermarket grocery sales in the year ending 21 June 2014. By comparison in North America it’s less than 20% and in developing countries, such as China, India and Brazil, it’s less than 5%.
One of the biggest growth areas in the UK is “premium” own brand products. Supporting these results 71% of UK respondents said the quality of own brand products has improved. This compares to 62% of Europeans as a whole.
What next for own brand?
When you delve into the figures the highest concentration of UK own brand sales are: Fruit & Vegetables (almost 100%), Meat, Fish & Poultry (96%) and Delicatessen (80%). The lowest concentration is in Health & Beauty (18%), Confectionery (22%) and Alcohol (25%). These areas offer a lot of opportunity to grow.
The survey also reveals that half of Britons would now buy more own-brand products if larger varieties were available. To succeed against growing competition retailers need to ensure that their own brand premium products are indeed premium. It’s also vital that shoppers can easily identify them on the shelf along with very clear reasons to buy.
To make a difference and stand out retailers are talking to us about smart signage. We’d be happy to tell you more about how to use smart signage to continue growing your own brand revenues.