54.7% of Retail Brands now Have Their Own Product Line

"Retailer-owned products not being seen as a cheap alternative anymore, but instead, a way to convey luxury and exclusivity. Price-Led Positioning is No Longer Dominating UK Supermarkets. Small UK businesses are aggressively growing, with price-led positioning becoming a dated trend. It's becoming evident that brands are no longer using their own branded products as a way to be a cheap alternative."

"Supermarkets are relying more and more on consumer loyalty to support them through bigger operating costs. Consumers are more willing to try alternative supermarkets, and brands are trying to compete by offering exclusive products that can't be found elsewhere."

"Even outside the grocery sector, we are seeing brands launch their own lines as a way to control pricing, as well as packaging and sustainability goals. Netflix is dominating with Netflix Originals, which reduces its reliance on licensing content for set periods of time. Spotify also has Spotify-exclusive podcasts as a way to differentiate itself from the competition."

Private label products have become a dominant force in retail, accounting for over 54.7% of grocery store sales. Rather than serving as budget alternatives, retailers now position private labels as premium and exclusive offerings targeting diverse consumer demographics. UK supermarkets like Tesco and Sainsbury's have expanded luxury ranges such as Finest and Taste the Difference. This trend extends beyond groceries into entertainment, beauty, and gaming sectors. Companies like Netflix, Spotify, and Boots leverage branded product lines to control pricing, packaging, sustainability, and differentiate from competitors. Consumer loyalty increasingly depends on exclusive products unavailable elsewhere, as price-led positioning becomes outdated.

Read at Business Matters