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The Rise of the Own-Brands Continues

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According to Own Brands, a new Market Report Update published by marketing intelligence firm, Key Note, the own brands market has continued to grow year-on-year over the past 5 years, rising by a massive 51.7% in 2011. This growth has primarily been driven by high levels of investment in own-brands, particularly from supermarket retailers, as well as new product development (NPD) and an increasing expansion into non-food areas, such as clothing and footwear; electrical goods; and cosmetics and toiletries. However, the biggest factor behind the large growth in own-brands has been the demand from customers, who are continually seeking out the best value for money, particularly following the ongoing financial troubles which are currently being experienced in the UK, and which have caused many consumers to tighten their spending.


On top of this own-brands have been subject to something of a makeover following increased investment in this particular area of the market, leading to many such product lines becoming much more sophisticated and attractive to customers, who have continued to seek cheaper prices, but are unwilling to sacrifice on quality. This is reflected in the large number of premium own-brand product lines that have been launched in recent years, such as Sainsbury's Taste the Difference and Tesco's Finest range. What has therefore emerged is a polarised market, in which both value and premium own brand product lines have continued to perform well.


Another trend to note has been the continued expansion of own brand products into other areas of the market aside from groceries, with the majority of supermarkets now offering a much wider variety of private label product lines, including clothing and footwear, homeware, electrical goods, and cosmetics and toiletries. This particular trend has been driven by the demand for low-cost items, particularly following the recession of 2008/2009, as well as the convenience of purchasing such goods all in one place, i.e. in the supermarket.


In the coming years, the market is predicted to continue to grow, with investment likely to continue well into the future, particularly from supermarkets. Although growth may not be as high as in previous years, the market is still forecast to grow by around 30.2% over the next 5 years.



View FREE Executive Summary & Table of Contents for Own Brands 2012