Own Label in Grocery Retailing - Europe

Published by: Mintel International Group Ltd.

Published: Mar. 1, 2007 - 171 Pages

Table of Contents

Issues in the Market

Key Points

Definitions

Abbreviations

Insights and Opportunities

Reformulating own brands

Convenient food

Gourmet food

East is weak

The Market in Brief

Figure 1: European own label market sizes by country, 2006

New launches

Own label ranges

Figure 2: Total own label product launches, Jan 06-Dec 06

UK launches

A cheaper alternative

A choice for every consumer taste

High profit margins

Own label domination

Fast Forward Trends

Trend 1: Hits and Niches

What it is - general observations

Market touchpoint/implications:

Trend 2: Pimp My Language

Market touchpoint/implications:

Trend 3: Purity

Market touchpoint/implications:

Industry Insight

Key Points

Own label - been around a long time

Products perfect for own label

Segmenting the own label offer

Penetration varies considerably around Europe

Figure 3: Private label penetration by country, 2005

Figure 4: Private label penetration by country, 2005

Private label in Europe

Own label integral to powerful retail multiples

Lower prices a key aspect of own label

Figure 5: Price differential between private label and manufacturer brands by country, 2005

Own label reflects differences in consumer tastes across Europe

UK

Figure 6: Private label market share by value in UK, 2005

Germany

Figure 7: Private label market share by value in Germany, 2005

France

Figure 8: Private label market share by value in France, 2005

Spain

Figure 9: Private label market share by value in Spain, 2005

Italy

Figure 10: Private label market share by value in Italy, 2005

Comparisons across countries

Frozen foods

Figure 11: Frozen foods: Five country comparison of market shares by value, 2005

Dry grocery

Figure 12: Dry grocery: Five country comparison of market shares by value, 2005

Alcoholic beverages

Figure 13: Alcoholic beverages: Five country comparison of market shares by value, 2005

Household goods

Figure 14: Household goods: Five country comparison of market shares by value, 2005

Health and beauty

Figure 15: Health and beauty: Five country comparison of market shares by value, 2005

Strengths and Weaknesses

Who’s Innovating

Key Points

Figure 16: Some examples of own label innovation

Across Europe

Germany

Figure 17: Total own label product launches, Jan 06-Dec 06

Figure 18: Percentage of own label product launches, Jan 06-Dec 06

Figure 19: Own label product launches within bakery, Jan 06-Dec 06

Figure 20: Own label skin and haircare product launches, Jan 06-Dec 06

Figure 21: Total household goods own label product launches, Jan 06-Dec 06

Market Size and Forecast

Key points:

Own label - the dynamic sector

Figure 22: European grocery own label market sizes by country, 2006

What has caused historic growth?

Will own label continue to grow?

Future growth sectors

The Consumer - Where Consumers Shopped

Key Points

Figure 23: Propensity to buy own label products by category across countries, December 2006

Figure 24: Europe: Factors most important when choosing where to buy food, December 2006

United Kingdom

Figure 25: Store used for main grocery shop (UK), December 2006

Figure 26: Store used for secondary shop (UK), December 2006

Germany

Figure 27: Where respondents do their main shop in Germany, December 2006

France

Figure 28: Where respondents do their main shop in France, December 2006

Spain

Figure 29: Where respondents do their main shop in Spain, December 2006

Italy

Figure 30: Where respondents do their main shop (Italy), December 2006

The Consumer - What Own Label Products Consumers Bought

Figure 31: What type of own label products do you buy? (UK), December 2006

Why buying own label products

Figure 32: How important is the shop’s range of own label products in your decision to shop there (UK)?, December 2006

Figure 33: Which of these statements do you think applies to own label products? (UK), December 2006

Use of own label sub-brands

Figure 34: When you go grocery shopping at these stores, how often do you buy each of their own label ranges?, December 2006

Figure 35: Tesco: Purchase of own label sub-brands, December 2006

Figure 36: Sainsbury’s: Purchase of own label sub-brands, December 2006

Figure 37: Marks & Spencer: Purchase of own label sub-brands, December 2006

Figure 38: Asda: Purchase of own label sub-brands, December 2006

Figure 39: Morrisons: Purchase of own label sub-brands, December 2006

Figure 40: Somerfield: Purchase of own label sub-brands, December 2006

Figure 41: Co-op: Purchase of own label sub-brands, December 2006

Figure 42: Waitrose: Purchase of own label sub-brands, December 2006

Main own brand categories compared

Figure 43: Consumers purchasing main retailer own brand every time, December 2006

Figure 44: Consumers purchasing budget own brand every time, December 2006

Figure 45: Consumers purchasing premium own brand every time, December 2006

Figure 46: Where consumers shop by what items bought, December 2006

Figure 47: Where consumers shop by what items bought, December 2006

Figure 48: Importance of the shop’s range of own label products to decision to shop there, December 2006

Figure 49: Health and beauty: Five country comparison of market shares by value in 2005

Germany

Figure 50: Type of own label products bought in Germany, December 2006

France

Figure 51: Type of own label products bought in France, December 2006

Spain

Figure 52: Type of own label products bought in Spain, December 2006

Italy

Figure 53: Type of own label products bought (Italy), December 2006

The Consumer - What Consumers Think of Own Label Products

Figure 54: Attitudes to own label products by retailer, December 2006

Figure 55: Attitudes to own label products by retailer, December 2006

Figure 56: Number of own label products purchased per shopping trip, December 2006

Figure 57: Own label purchasing quantities by retailer, December 2006

Figure 58: Own label purchasing quantities by product group, December 2006

Detailed Consumer Demographics

Figure 59: Where respondents shop, by gender, age and socio-demographic factors, December 2006

Figure 60: Types of own label products bought by socio-demographic factors, December 2006

Figure 61: Types of own label products bought by socio-demographic factors, December 2006

Figure 62: Where own label products bought, by gender, age and socio-demographic factors, December 2006

Figure 63: Reasons for buying own label, by gender, age and socio-demographic factors, December 2006

Figure 64: Reasons for buying own label, by gender, age and socio-demographic factors, December 2006

Share of the Market

Leading specialists

Figure 65: Leading European grocers’ own brand importance, 2006

Recommendations

Figure 66: Summary of leading European grocery retailers, 2005/06

UK - Grocery Own Label Advertising Spend

Figure 67: Major UK retailers’ own brand advertising spending, 2001/02-2005/06

Figure 68: Tesco own brand advertising spending, 2001/02-2005/06

Figure 69: Sainsbury’s own brand advertising spending, 2001/02-2005/06

Figure 70: Asda own brand advertising spending, 2001/02-2005/06

Figure 71: Morrisons own brand advertising spending, 2001/02-2005/06

Figure 72: Somerfield own brand advertising spending, 2001/02-2005/06

Figure 73: Comparative advertising spending on premium sub-brands, 2001/02-2005/06

Figure 74: Comparative advertising spending on healthy eating sub-brands, 2001/02-2005/06

Brand Elements

Brand analysis and recommendations

Aldi - Only price to recommend it

Figure 75: Words associated with Aldi

In terms of emotional territory Aldi posts:

Recommendations

Asda - Living up to its lowest price reputation

Figure 76: Words associated with Asda

In terms of emotional territory Asda posts:

Recommendations

The Co-op - Convenient and worthy

Figure 77: Words associated with the Co-op

In terms of emotional territory the Co-op posts:

Recommendations

Marks & Spencer Food - Reassuringly expensive

Figure 78: Words associated with Marks & Spencer

In terms of emotional territory M&S posts:

Recommendations

Morrisons - Good value but not rated for much else

Figure 79: Words associated with Morrisons

In terms of emotional territory Morrisons posts:

Recommendations

Sainsbury’s - Healthily reliable

Figure 80: Words associated with Sainsbury’s

In terms of emotional territory Sainsbury’s posts:

Recommendations

Tesco - Market leader pushes all the right buttons

Figure 81: Words associated with Tesco

In terms of emotional territory Tesco posts:

Recommendations

Waitrose - Unashamedly upmarket

Figure 82: Words associated with Waitrose

In terms of emotional territory Waitrose posts:

Recommendations

Usage of grocery retailers

Tesco is the leader of the pack

Figure 83: Consumer usage of grocery retail brands

Attitudes towards grocery retailers

M&S top for recommendations

Figure 84: Consumer attitudes towards grocery retail brands

Brand satisfaction and performance

Figure 85: Consumer rating of experience of grocery retailers

Brand commitment

Figure 86: Degree of customer commitment to grocery retailers

Retail Analysis

Key Points

Retailer profiles

Carrefour

Tesco

Edeka Group

Schwarz Group

Aldi

E.Leclerc

Figure 87: E.Leclerc: Own-brands, 2006

Auchan

Sainsbury’s

Asda

Casino

Wm Morrison

Système U

Ahold

Tengelmann (Plus & Kaiser’s Tengelmann)

Co-op Norden

Coop Italia

Real (Metro)

Mercadona

Conad

Somerfield

ICA

Dansk Supermarked

Figure 88: Dansk Supermarked: Own brands, 2005/06

Coop Schweiz

Spar Österreich

Grupo Eroski

Delhaize

Marks & Spencer

Waitrose

Appendix:

Research methodology

Abstract

Own label is a hive of creativity and innovation precisely because it is under the direct control of the retailers themselves. They allow the retail giants to fine-tune their market positioning in order to achieve their corporate objectives, from low-priced budget products to sophisticated premium meals.

This report looks at this vital and dynamic sector that achieved sales in Europe of €205 billion in 2006, with a view to highlighting its significance.

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