A decade ago seen as low-quality counterparts of branded products, now private labels have gained full trust and appreciation by global consumers, the latest Nielsen’s Global Survey of Private Label shows.
On average, 60% of the surveyed consumers from 60 countries agree that own-label products are of decent quality that is no worse than of branded products. The positive perception of own-label products in different aspects is slightly higher in the US (74% ) than in the UK (71%). In both countries the same share of consumers (71%) agree that the quality of private label products has improved, compared to 63% of average European perception.
As per value share of the private label products, the weighted global average is 16.5%, while Switzerland has the highest rate of 45% and Egypt has 0. The value share in the UK is also high—41%.
In the UK in 2014, own-label products in grocery segment account for 54% of all supermarket grocery sales, where 1.4% are premium own-label grocery products, showing 5.2% year-on-year growth. For example, in North America own-label grocery products account for just 20%; in the developing countries such as China, India or Brazil—less than 5%.
Some other interesting facts on the British consumers’ perceptions of private labels:
- 60% consider the quality of own-labels is as good as name brands ( 34% in 2010).
- 42% consider the quality of own-labels is higher than name brands.
- 26% consider the quality of own-labels not good enough.
- 37% consider that own-label products are for people on tight budgets.
- 44% would be willing to pay the same or more for an own-label product if they liked it (28% in 2010).
- 50% would buy more own-label products if a greater variety was available.
The full Nielsen’s Global Survey of Private Label report can be downloaded here.