A new study highlights significant opportunities for traditional brand owners and retailers with own brands to work together to drive long-term growth.
The study, carried out by Saatchi & Saatchi X and POPAI, says that, by collaborating, brand owners and retailers can transform the way shoppers currently experience brands to provide a better in-store experience.
Private labels have enjoyed huge growth over the last decade – twice the rate of famous household brands – and they now account for about half of the UK shopping basket. Their success has heightened fears amongst traditional brand owners about the impact on their sales and the ongoing shift in power towards retailers.
However, Phil White, planning director at 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’s concerned, brands and own brands can’t survive without each other. Only 16% 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.”