Retail Commercial Property Own-Brand Products Vs Branded

Posted on 27 May, 2012 by Kirsten Kennedy

Supermarket commercial properties have recently spotted a trend with their consumers, indicating that big brands for low prices is no longer a priority for many people. Instead, more and more customers in commercial property supermarkets are passing over brands such as Heinz, Walkers and Birds Eye, and choosing to make their budgets go further by purchasing the own-brand ranges offered by the vast majority of stores.

A survey, carried out by consumer analysts Mintel, shows that, for the first time ever, new products launched under supermarket commercial property own brand labels outnumbered those marketed under brands. As a result, own brands make up 54 per cent of the new products on our local commercial property supermarket’s shelves, with branded goods trailing at 46 per cent.

Researchers behind the study believe that shoppers have swung in favour of the value products due to improved taste and quality. In fact, 57 per cent of commercial property supermarket customers believe that own brand products have improved significantly in the past few years, while 52 per cent of those surveyed actually prefer them to big brand labels.

Labels such as Tesco Value, Sainsbury’s Basics and Essential Waitrose have seen huge rises in sales since the start of the recession, as consumers struggle to balance their finances against the weekly commercial property supermarket shop. Similarly, supermarket commercial properties such as Aldi and Lidl are becoming increasingly popular, largely because of their low prices and range of brands available in the store.

Products such as Tesco Value orange juice and Morrisons Value baked beans in tomato sauce have proven exceptionally popular, as most consumers admit to not being able to tell the difference between the supermarket own brands and big brand labels. However, Mintel researchers discovered that all is not lost for big brands in commercial property supermarkets, as 58 per cent of consumers still believe that, for some items, splashing a little extra cash on branded goods is essential. These tend to be meat products such as chicken and fish, and dairy products such as cream, cheese and yoghurt.

Senior food analyst at Mintel, Chris Wisson, says; “Times have changed and there is no longer a perception about own label equating to lower quality.

“Our research shows that many affluent consumers do not necessarily dismiss own label products out of hand. They appear to be keen users in certain categories.

“Consumers expect to buy more standard and value own label foods while cutting back on brands. While there are signs that pressure on consumer budgets is slightly easing, 2012 looks set to see the majority of adults remaining discerning when shopping.”

The study was released a day after it was revealed one in five consumers throw out foods obtained in buy one, get one free offers and similar supermarket commercial property promotions. Not only is this a waste of money, despite the savings made, but it is also beginning to cause environmental issues at land fill sites.

The Organic, Naturally Different campaign, under the Organic Trade Board, carried out the research, and as a spokesman for the organisation pointed out; “It’s false economics if you end up buying food because it’s cheap but end up throwing it away.”


However, Mintel’s research seems to indicate a transition from big brand “BOGOF” offers, with supermarket commercial properties simply offering their own brands at a high standard for consumers. Hopefully, then, this will lead to less waste and greater savings for shoppers in the long run.

Mr Wisson concluded; “Retailers are appearing to put greater weight behind their own label ranges in attempts to encourage consumers to switch into using them.

“More comprehensive ranges, product improvements and even range relaunches have all put greater pressure on food and drink brands.”

Do you tend to pick up a mix of own brand and big brand labels at your local commercial property supermarket? Or do you still believe cheaper own brand foods cannot offer the same quality, or better, than brands that have traditionally been more popular?




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