Companies are rapidly expanding their branded product lines to meet changing consumer behavior. Private label brands now account for over 54.7% of grocery store sales.
Retail products are no longer seen as a cheap alternative, but rather as an opportunity to convey luxury and exclusivity.
Price-based positioning no longer dominates UK supermarkets
Small British businesses are growing aggressively
with price-based positioning becoming an outdated trend. It’s becoming clear that brands are no longer using their own brand products as a cheap alternative. Instead, supermarkets are now investing in more premium or luxury ranges to appeal to different consumer groups. An example of this is Tesco’s Finest range, but at the same time Sainsbury’s has also significantly expanded its Taste the Difference range.
Aldi and Lidl also have their own brand ranges. Supermarkets are increasingly relying on customer loyalty to achieve higher operating costs. Consumers are more willing to try alternative supermarkets and brands are trying to compete by offering exclusive products that cannot be found elsewhere.
Brands are exploring private label products outside of the food sector
It’s not just the supermarket industry that relies on branded products. Even outside of the food sector, we are seeing brands launch their own product lines to control pricing, packaging and sustainability goals. Boots, for example, has its own brand, Soap & Glory. We are also seeing a change in the entertainment industry.
Netflix dominates with Netflix Originals, which reduces its reliance on licensing content for specific periods of time. Spotify also offers Spotify-exclusive podcasts to differentiate itself from the competition. We also see this trend in the iGaming sector. Visiting an online live casino site in the UK often means discovering a range of exclusive titles such as The Sun Live Roulette that reflect the site’s identity. This allows brands to tweak the rules or offer new gaming experiences for games like blackjack, roulette and baccarat. At the same time, exclusivity is also a priority, as brands can protect their content while addressing their target group directly.
Even though we are seeing big trends right now, it is more of a structural shift that is changing the way companies compete with each other. Supermarkets may offer premium prepared foods, but at the same time the beauty industry is also building global cosmetic brands. This not only reduces the store’s dependence on suppliers, but also opens the door to new and creative marketing opportunities.
For small businesses across the UK, brands can no longer get by with offering a standard range of products. If this approach is adopted, it will simply be a race to the bottom as to who can offer the lowest prices. Offering exclusivity makes it possible to offer a product that no one else offers and, in cases like this, makes it easier to set price points that are not comparable or competitive. Brands are finally taking control of an unpredictable market, and consumers will benefit greatly.
