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Over the Next Five Year Sales in the UK Own Brands Market are Expected to be Over the Rate of Inflation.


DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c40164) has announced the addition of Own Brands Market Report 2006 to their offering.

This report covers the UK market for own-brand products. In particular, it focuses on own brands in the following sectors: groceries; over-the-counter (OTC) medicines; do-it-yourself (DIY) products; and clothing and footwear.

We estimate that the total value of own-brand sales in 2005 was GBP 69.1bn at retail selling prices. Sales have increased by a total of 17.3% since 2001. In addition to a general rise in UK retail sales, the growth in this market reflects the increasing range of own-brand products available. Growth rates accelerated between 2001 and 2005, as own-brand products expanded their presence across markets -- moving from their original status as low-priced, value-for-money items into the premium and lifestyle arenas. Retailers are focusing on developing premium food products that directly address consumer concerns about the provenance of the food that they eat, as well as responding to growing consumer interest in healthy eating.

The grocery market is the largest sector of the own-brands market, and is primarily composed of three major segments: foodstuffs; beverages; and household goods. The UK's major supermarkets, along with a number of major private-label retailers, supply a wide range of food, beverages and additional non-food own-brand items.

The rise of own-label products -- one of the most striking retail success stories of the last decade -- is also being seen in many other sectors. In clothing, for example, flagship own-label brands such as ASDA ASDA - Accelerate-Stop Distance Available
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's George clothing and Tesco's Value range are having a dramatic effect, with the two supermarket giants emerging among the top three clothing retailers in the country (from virtually a standing start a decade ago).

The increasingly concentrated nature of the retail market is one of the main factors supporting the rise of own-label products. Retailers have growing bargaining power as the market becomes more concentrated, and have the confidence to invest in establishing their own brands (which offer greater margins than can be obtained from selling non-retailer brands). The growth of high-quality own brands, such as Tesco's Finest and Sainsbury's Taste the Difference, is likely to further increase pressure on suppliers of non-retailer-branded goods.

The outlook for own brands appears bright. Sales are likely to expand at well above the rate of inflation over the next 5 years, driven by factors such as the growing penetration of supermarkets into non-food sectors (including clothing, electronics, health and beauty and OTC medicines). Meanwhile, the range of own-brand goods available in DIY outlets is also likely to expand, as firms such as B&Q devote ever-increasing shelf space to own brands in the pursuit of profits growth. The increasing acceptance among consumers of own brands also suggests that the drive of private-label products into premium and lifestyle sectors of the grocery market will continue.

Topics Covered

Executive Summary

1. Market Definition

2. Market Size

3. Industry Background

4. Competitor Analysis

5. Strengths, Weaknesses, Opportunities and Threats

6. Buying Behaviour

7. Current Issues

8. The Global Market

9. Forecasts

10. Company Profiles

11. Consumer Confidence

Companies Mentioned

- Aldi Stores Ltd

- Arcadia Group Ltd

- Asda Group LTd

- Boots Group Plc

- John Lewis Partnership Plc

- Kingfisher Plc

- Marks And Spencer Plc

- New Look Group Ltd

- Next Plc

- Primark Stores Ltd

- Tesco Plc

For more information visit http://www.researchandmarkets.com/reports/c40164
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Aug 1, 2006
Words:560
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