Saatchi & Saatchi X Publish Private Label Study

London - The huge growth of private label brands is a massive opportunity for brand owners and retailers to grow overall category value, concludes the first study to look at private label marketing from a brand owner, retailer and shopper perspective.
The study revealed private label brands (owned, sold and distributed by retailers) represent an opportunity for brand owners and retailers to collaborate to deliver significant category growth in the long-term by looking more closely at shoppers' needs.
By changing the way they work together, brand owners and retailers can transform the way shoppers currently experience brands to deliver a better experience in store.

The study has been conducted against a backdrop of staggering growth in private label brands and the fear among brand owners about the impact on their sales and the continuing shift in power into the hands of retailers.

Phil White, planning director, Saatchi & Saatchi X said: "By exploring retailers, brand owners and shoppers attitudes, perceptions and behaviours, we've uncovered the surprising truth that private label isn't a threat or a Trojan Horse, it's an opportunity for everyone.

"As far as the shopper is concerned, brands and own brands can't survive without each other. Only 16 per cent of the shoppers we talked to can imagine a future with only own label brands. Brands and retailers must work together to continually reinvent themselves through shopper insight, deeper brand involvement and innovation to win in their categories."

Private label brands have grown at twice the rate of famous household brands over the last decade with own label products now accounting for around 50% of the UK shopping basket. The private label industry is now worth an estimated one trillion dollars.

The study identifies ten "joint value innovation" principles to help brand owners and retailers probe into every facet of private label, unlock its potential and predict the impact it can have.

To download a free copy of the research highlights or purchase the research report in full (non POPAI members) visit www.popai.com/privatelabel


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