Saatchi & Saatchi X Publish Private Label Study

30 JUL 2007

London - The huge growth of private label brands is a massive opportunity for brand owners and retailers to grow overall category value, concludes the first study to look at private label marketing from a brand owner, retailer and shopper perspective.
The study revealed private label brands (owned, sold and distributed by retailers) represent an opportunity for brand owners and retailers to collaborate to deliver significant category growth in the long-term by looking more closely at shoppers' needs.
By changing the way they work together, brand owners and retailers can transform the way shoppers currently experience brands to deliver a better experience in store.

The study has been conducted against a backdrop of staggering growth in private label brands and the fear among brand owners about the impact on their sales and the continuing shift in power into the hands of retailers.

Phil White, planning director, Saatchi & Saatchi X said: "By exploring retailers, brand owners and shoppers attitudes, perceptions and behaviours, we've uncovered the surprising truth that private label isn't a threat or a Trojan Horse, it's an opportunity for everyone.

"As far as the shopper is concerned, brands and own brands can't survive without each other. Only 16 per cent of the shoppers we talked to can imagine a future with only own label brands. Brands and retailers must work together to continually reinvent themselves through shopper insight, deeper brand involvement and innovation to win in their categories."

Private label brands have grown at twice the rate of famous household brands over the last decade with own label products now accounting for around 50% of the UK shopping basket. The private label industry is now worth an estimated one trillion dollars.

The study identifies ten "joint value innovation" principles to help brand owners and retailers probe into every facet of private label, unlock its potential and predict the impact it can have.

To download a free copy of the research highlights or purchase the research report in full (non POPAI members) visit www.popai.com/privatelabel

• For more information about the research, to have it presented in full or find out more about the Joint Value Innovation workshops please contact Phil White at Saatchi & Saatchi X on +44 7961 579 441 or at phil.white@saatchix.co.uk or Tim Buchholz at POPAI on +1 703 373 8813 or at tbuchholz@popai.com.
  
• The study from Saatchi & Saatchi X and POPAI is the forerunner to Private Label: Turning the Retail Brand Threat into Your Biggest Opportunity by Keith Lincoln and Lars Thomassen.? The full report is available from POPAI at www.popai.com/privatelabel for free to POPAI members until 15 October 2007 and for $500 (£249 / €367) after that date.  It is available to non-members for $500 (£249 / €367).
  
• Debunking the myths and looking at all possible scenarios, Private Label: Turning the Retail Brand Threat into Your Biggest Opportunity by Keith Lincoln and Lars Thomassen offers brand managers ways to view private label, not as a threat, but as an opportunity to revitalise their brands. It is out on 3 November 2007.
  
• Saatchi & Saatchi X is a global leader in shopper marketing, revered as the hothouse for world-changing brand experiences that create sustainable growth for our clients. Through strategic in-store communications and a deep understanding of shoppers' motivations, Saatchi & Saatchi X is successfully creating intuitive shopping experiences that transform shoppers into buyers. The agency employs over 650 people across 25 offices in six countries worldwide, including Africa, Asia-Pacific, Arabian Peninsula, Europe, South America and North America. Saatchi & Saatchi X offers shopper marketing leadership as well as expertise in environmental design, package design and in-store media. The agency is part of the Publicis Groupe network, the world's fourth-largest advertising agency holding company. Visit the Saatchi & Saatchi X Web site at www.saatchix.com.
  
• POPAI is the only non-profit association serving the global marketing at-retail industry. On its member's behalf, POPAI initiates strategic programs that positively impact the industry's direction and protect the industry from undue regulation. POPAI provides the industry with research, education and resources; plus the Outstanding Merchandising Awards (OMA) contest. The organization also facilitates an international dialogue and information exchange between its worldwide members.
  
• POPAI is developing an industry-wide system to assure the integration of Marketing at-Retail into the media mix during the initial planning stages. POPAI is also leading the industry in the area of digital signage and supporting media networks - technology that has already opened up the market to hundreds of new creative ideas that promise to further stimulate growth. POPAI was founded in 1936 and has offices in over 19 countries. For additional information about POPAI, visit www.popai.com/hq