Own Labels as Good as Big Brands

Four fifths of consumers in Europe, the Pacific and North America think that 'private label' or supermarket own-brands are a good alternative to other brands, according to ACNielsen's latest study. In developing markets, where own-label products are less well established, consumers are more likely to view them as inferior.

The twice-yearly ACNielsen Online Consumer Opinion Survey polled more than 21,000 respondents in 38 markets from Europe, Asia Pacific, North America, Latin America and South Africa. The study asked consumers what they thought of the quality, value for money, packaging and positioning of 'own label' goods.

Globally, 68% of respondents think own brands are a good alternative to other brands, but agreement is much stronger in the developed markets of Europe (78%), the Pacific (78%), North America (77%) and South Africa (72%). This compares with 64% of Latin Americans and 51% of consumers in Asia.

Of those countries rating supermarket labels most highly, the top ten are all in Europe, led by the Netherlands (91% think they are a good alternative), Portugal (89%) and Germany (88%). Eight of the bottom ten are from Asia, with Japanese and Malaysian consumers (35%) least likely to agree that own labels are a good alternative.

When asked whether there were some products where quality mattered so much that private labels weren't suitable, 40% agreed overall, with 51% of Latin Americans and 48% of Asians but only 35% of European consumers in agreement.

As the perceived quality gap narrows between private and supplier brands, retailers appear to have improved the quality of their packaging. An average of 42% of consumers disagreed that private label products had cheap, off-putting packaging, led by half the Europeans and 46% of North Americans. Cheap packaging is certainly not an issue for retailers in Germany, Austria and Finland, where more than two thirds of consumers disagree.

The view that own-label products are for those who cannot afford any better is most prominent in developing markets. When asked whether own-label products were meant for people on tight budgets who could not afford the best brands, 42% disagreed on average, rising to 56% in North America and 50% in Europe. Particularly strong disagreement was expressed in Finland (72%), Germany (66%), the Netherlands (65%) and Sweden (64%). At the other end of the scale, more than two thirds of consumers in Taiwan, Malaysia, Indonesia and the Philippines agreed that private labels were for those who could not afford the 'best' brands.

Frank Martell, CEO, ACNielsen Europe commented: 'Thirty years ago in the UK - and today in less developed retail markets - private-label products were perceived as low quality and cheap. Today, the industry has evolved to the point where private label means premium quality, higher pricing and innovation-based category leadership. Our survey clearly shows that the longer consumers have been exposed to private labels, the better they think of them.'

The company is online at www.acnielsen.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

• The Nielsen Company (UK)
• All news
• MrWeb info