Threat of own brands continues as economy recovers

Consumers’ shift to own label goods from branded FMCG products is permanent according to market research company Verdict Research.

As the economy stabilises, Verdict predicts that the lower tier ranges, such as Tesco’s Discount Brands, introduced to safeguard footfall, will loose momentum and consumers will return to  higher end ranges including organic and Fairtrade.

To compete with private labels, manufacturers of branded FMCG goods should look towards new distribution channels such as opening their own stores or launching value versions of branded goods.

Premium own labels are already showing signs of recovery and The Co-operative Group posted strong results for its top tier range last week.

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