Marketing Magazine this month shares a new report by Datamonitor that predicts supermarkets’ own-label food products will generate sales of $24.7bn in Asia Pacific by 2014, compared with $18bn today.
What’s bound to worry brand marketers is the consumer thought that seems to be driving this growth. The report claims that 77% of Asia¬–Pacific consumers believe private label options are equal or even superior in quality to well known brands.
It seems private label is no longer just about lower prices.
“Although famous-name brands still dominate the market in consumer packaged goods, they need to consider private labels as serious competition both now and in the future,” says Datamonitor analyst Mark Whalley.
“Consumer perceptions are evolving and no longer is there an overwhelmingly ‘snobbish’ mentality towards supermarket brands.”
Spend on own label across Asia-Pacific countries is tipped to hit $24.65 billion for food, $11.17 billion for non-alcoholic drinks, $580 million for alcoholic beverages and $370 million for household care products by 2014.
The report also suggested:
- About half of the region’s shoppers currently choose specific chains based on the available private label offerings;
- Over two-thirds of customers also believe own label products provide at least an equivalent standard to national brands;
- 50% stated the quality levels between these variants are the same;
- 27% agreed own-label lines are actually superior to big-name alternatives.