The Private Label Household Care Consumer - UK - April 2014
“The finding that such large proportions of people have noticed improvements to own-label household care products in terms of quality and selection in recent years gives grounds for optimism, as does the number of people who think further improvements would tempt them to buy more own-label versions of products. Raising awareness of what own-label has to offer and using in-store marketing to encourage trial and repeat purchasing, including through injecting more personality into ranges, will be vital for increasing sales.”
– Richard Caines, Senior Household Care Analyst
Some questions answered in this report include:
- Why has private label not gained ground during the economic downturn?
- How can retailers overcome barriers to own-label sales growth?
- How can perceptions of own-label be changed to drive increased sales?
The market for private label household care products was worth £1.41 billion in 2013, but sales were down by compared with 2012 as the value of own-label sales continued to be hit by heavy promotional activity by manufacturers of branded products in the sector. NPD activity continues to improve the own-label offer, but shoppers are spurning this for discounts on branded products.
The challenge is to grow own-label from its current share of the household care market, and to do this retailers need to further change perceptions of their own products. NPD needs to be more strongly communicated to shoppers to encourage them to take what they may see as a risk and switch to own-label from their favourite brands.
Lower prices are clearly not enough to increase market share in this market, especially if any savings are wiped out by offers on branded products, so own-label products need to also demonstrate more clearly and strongly that they measure up with the brands in terms of quality.
This report looks at the contribution of own-label in all the categories making up the private label household care market, where people buy own-label, what would encourage them to buy more and their perceptions of and attitudes towards the ranges currently on offer.
Manufacturer brands: products which are available in most grocery stores and can be brand leaders or secondary brands. Examples include Persil, Fairy and Dettol.
Private label: brands which are controlled and managed by retailers, carrying either the retailer’s name or an exclusively created name. This group includes tertiary/venture brands which are exclusively made for a retailer such as Tesco’s Daisy ‘discounter’ brand.
Own-label: products which carry the retailer’s name, with sub-brands segmented according to considerations such as being more environmentally friendly and added-value product benefits. Examples include the Tesco Expert range and Asda Chosen by You Eco-Friendly.
Standard own-label: products positioned as retailers’ core range with a mid-tier price generally covering the majority of product markets. Examples include By Sainsbury’s and Asda Chosen by You.
Value/economy own-label: products positioned at the lower end of the price spectrum, serving as the opening price point in each category. Examples include Sainsbury’s Basics and Tesco Everyday Value.
Purchasing of own-label products in the following product categories:
- Fabric care
- Dishwashing products
- Hard surface care
- Toilet care Air care
- Household paper products (toilet tissue, kitchen roll, facial tissues)
- Cleaning equipment
Value figures throughout this report are at retail selling prices (rsp) unless otherwise stated. Market sizes at constant 2013 prices are calculated using Mintel’s Household Goods deflator.
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