Named brand sales trounced by own label goods
'Own label' foods are out-selling named brands as consumers attempt to stretch their shopping budget further.
Research from Mintel found that in 2011, revenue from stores' own products had overtaken well-known brands for the first time. Own labels sales totalled 54 per cent, while name brands achieved just 46 per cent; representing a nine per cent drop since 2010.
Perception of own label products has altered. Where once value products were seen as an inferior option, 57 per cent of consumers believe that items as 'better than they used to be', according to dailymail.co.uk and over half of those polled prefer them to well-known equivalents.
Mintel also discovered that some 80 per cent of shoppers feel that own label products provide better value for money than branded ones.
With that in mind, Marks & Spencer and Waitrose introduced cheaper Simply M&S and Essentials ranges respectively, to accommodate the demand for less pricey goods. Tesco recently rebranded its 'Value' range, revealing a slightly more sophisticated packaging and the name 'Everyday Value'. It aims to improve the perceived quality of the range's products, according to marketingweek.co.uk.
Mintel's senior food analyst, Chris Wisson, commented: "Retailers are appearing to put greater weight behind their own label ranges in attempts to encourage consumers to switch to using them. Times have changed and there is no longer a perception about own label equating to lower quality"