End of the road for own-brands?

The bonanza years for own-brand packaging designers could be coming to an end, according to predictions last week. – Own-brand products now account for 45 per cent of packaged goods sold by the major supermarkets, or up to 55 per cent in Sainsbury’s store

The bonanza years for own-brand packaging designers could be coming to an end, according to predictions last week.

Own-brand products now account for 45 per cent of packaged goods sold by the major supermarkets, or up to 55 per cent in Sainsbury’s stores.

But that level of growth will now ease off, according to the report Own-label in The UK – The Grocery Trade Poised For Change, from research group Corporate Intelligence.

The report predicts that the practice of Efficient Consumer Response, a technique involving closer relationships and more exchange of information between retailers and suppliers, could lead to a tailing off of own-label product launches.

But changes in the tactics of own-label development may mean continued work for packaging consultancies. “It depends how you classify own-label,” says Kevin Veys, director of branding consultancy Brand Matters.

He predicts a move by supermarket groups towards stand- alone branding in the mould of Marks and Spencer’s St Michael label, rather than the lookalike supermarket ranges of the past.

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