PLM - THE PRIVATE LABEL SCENARIO…IN UK
UK – Using Private Label for Innovation or as a Competition Tool The UK, with a private label share of over 50%, is seen as a driving force behind new product development and innovation. However it is also seeing private label being used as a tool for retailers to compete with each other over price.
I
t is well recognised that the key reason to develop a compelling private label range is to help retailers differentiate from their competition and to drive customer loyalty. The UK, with a private label share of over 50%, is seen as a driving force behind new product development and innovation. However it is also seeing private label being used as a tool for retailers to compete with each other over price. As in most European countries, private label ranges across the UK retailers initially took the standard format of offering “good, better and best” tiering, allowing the consumer to choose from a range of qualities to fit their budget. Most of the “good” tier came in the form of plain white packaging, often referred to as the Value tier. The “better” tier, also known as “standard” tier, was marketed under the retailer’s name and the “best” tier offered premium quality products under branding such as Tesco Finest and Sainsbury’s Taste the Difference. The premium private label tier flourished during 2020 as the UK consumer looked for high quality products that replicated the restaurant
44
