Businesses are rapidly growing their branded product lines in an attempt to meet changing consumer behaviour. Private labels now account for over 54.7% of sales made at grocery stores.
Retailer-owned products not being seen as a cheap alternative anymore, but instead, a way to convey luxury and exclusivity.
Price-Led Positioning is No Longer Dominating UK Supermarkets
Small UK businesses are aggressively growing, with price-led positioning becoming a dated trend. It’s becoming evident that brands are no longer using their own branded products as a way to be a cheap alternative. Instead, supermarkets are now investing in more premium or luxury ranges, in an attempt to target different consumer demographics. Tesco’s Finest range is an example here, but at the same time, Sainsbury’s has also expanded their Taste the Difference range quite significantly.
Aldi and Lidl also have their own branded product lines. Supermarkets are relying more and more on consumer loyalty to support them through bigger operating costs. Consumers are more willing to try alternative supermarkets, and brands are trying to compete by offering exclusive products that can’t be found elsewhere.
Brands are Exploring Own-Branded Products outside the Grocery Sector
It’s not just the supermarket sector that is exploring brand-name products. Even outside the grocery sector, we are seeing brands launch their own lines as a way to control pricing, as well as packaging and sustainability goals. Boots, for example, have their own brand, Soap & Glory. We are also seeing a shift in entertainment.
Netflix is dominating with Netflix Originals, which reduces its reliance on licensing content for set periods of time. Spotify also has Spotify-exclusive podcasts as a way to differentiate itself from the competition. We are also seeing this trend in the iGaming sector. Visiting an online live casino UK site often means discovering a range of exclusive titles like The Sun Live Roulette that reflect the site’s identity. This allows brands to tweak the rules or offer new gameplay experiences for games like blackjack, roulette, and baccarat. At the same time, it also dials in on exclusivity, as brands can protect their content while appealing directly to their target audience.
Even though we are seeing big trends right now, it’s more of a structural change that is changing how businesses compete with each other. Supermarkets might be providing premium-level ready meals, but at the same time, the beauty sector is also building global cosmetic brands. This not only reduces the store’s reliance on vendors but also opens up the door to new and creative marketing opportunities.
For small businesses across the UK, brands can no longer get by with offering a standard range of products. If this approach is adopted, it’s simply a race to the bottom to see who can offer the lowest prices. By offering exclusivity, it becomes possible to offer a product nobody else does, and in instances like this, it becomes easier to set price points that cannot be compared or competed with. Brands are finally taking control of an unpredictable market, and consumers stand to benefit significantly.
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54.7% of Retail Brands now Have Their Own Product Line