UK shoppers turn to supermarket own-brands

Thursday November 27th 2014

 

A new study has found that shoppers are becoming increasingly positive about supermarkets' own-brand products.

The Nielsen Global Survey of Private Label report shows that own-brand products accounted for 54% of UK supermarket grocery sales in the year to 21 June 2014. Meanwhile, sales of ‘premium’ own-brand products grew 5.2% year-on-year, which is nearly four times the rate of overall grocery sales.

Nielsen’s study, which polled more than 30,000 online respondents in 60 countries, found that 71% of UK respondents said the quality of own-brand products has improved. This compares to 62% of Europeans as a whole.

Six in 10 UK consumers said the quality of most own-label brands is as good as named brands, which is nearly twice as many who said the same four years ago. Furthermore, 42% said some own-brands are actually of higher quality than named brands. Only 26% said they believed that own-brand products are not suitable when quality matters.

Meanwhile, 37% of UK consumers polled were found to regard own-brand products as being for people on tight budgets or those unable to afford the best brands. This compares to 46% of Europeans. However, 44% would be willing to pay the same or more for an own-brand if they liked it – up from 28% four years ago.

“The perception of own-brand products has improved dramatically in recent years,” says Nielsen’s UK head of retailer and business insight, Mike Watkins. “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 study also shows that half of Britons would now buy more own-brand products if a wider variety was available.

Watkins continued: “Britons have a much greater appetite for own-brand groceries than shoppers in other markets around the world. While most grocery sales in the UK are own-brand, in North America, it’s less than 20%; in developing countries, such as China, India and Brazil, it’s less than 5%; and in the Middle East, it’s no more than 1%.”

However, among the 33 product types covered in the survey, UK consumers were found to be most willing to pay higher than average prices for toothpaste, shampoo and deodorant – categories synonymous with big name brands.