Supermarkets own-label have now acquired own niche and become sophisticated brands in their own right, says a report.
In the last few years, own-label have got a segmented profile and use variations to meet the demands of every consumer, said the Key Note Own Brands report.
The report noted that growth rates within the own-label market showed the growing popularity of retailer brands and the broader range of products on offer.
The total value of own-brand sales last year was US$147.6 billion representing a rise of 18 per cent over the review period from 2002. Besides, this is almost twice the growth rate of 9.5 per cent for total retail sales.
The Key Note report said the power in the retail supply structure has shifted from the brand owner to the retailer.
“The speed at which supermarkets can react to the changing trends within the food and grocery industry gives them a distinct advantage over many of the larger brands – they have the ability to bring new own brands to the market at a fraction of the time and cost it would take to do within a well-known brand,” Key Note report observed.