I’ve been fortunate enough to work all over the world and one of the biggest things I’ve learned is that regardless of where they live, mums want the best for their family. Since joining Asda six months ago, I’ve really seen this in action, particularly in the growing demand for own-brand ranges that offer quality as well as low prices.
Own label was once seen as the poor relation to branded. Not anymore. It now generates £52bn sales annually and is growing by 3% a year. And while attention has traditionally focused on the value and premium ends of the spectrum, the middle ground is finally coming into its own.
For today’s savvy shopper, loyalty plays second fiddle to finding the highest quality at the best value. The growth of own-label, and specifically the mid-tier, is symbolic of this shift and it’s forcing retailers to take a long, hard look at their own-label offerings.
” Mid tier is coming into its own thanks to ranges such as Chosen by you”
Two years ago this month, Asda launched its Chosen by you range. Needless to say, investing £100m in a category traditionally overlooked was a risk. What’s more, Asda threw out the rulebook on how to develop the range, shunning the tried and tested approach of celebrity endorsement and focusing instead on putting the real experts on what makes a great product - customers - at the heart of the decision making.
By letting mums decide what goes on our shelves, we have shown that great products aren’t just delivered by brands and premium lines. Two years down the line, we have the biggest customer-testing food programme in the UK, involving more than 500,000 blind taste tests and more than 85,000 customers. Chosen by you now encompasses around 9,000 products and is the fastest-growing mid-tier range in the UK, growing twice as fast as its nearest competitor.
Its development has also driven a step change in the market. While own-label goods used to be polarised, offering either value or premium quality, Chosen by you represents thoroughly researched mid-tier products distinct from their branded counterparts. Own-brand products now taste great, look good and have a quality feel.
The success of Chosen by you has given us the confidence to work on products we may not have considered previously. We are more in tune with customers’ favourite flavours, so we can launch products a long time before the brands. Our relationship with Leiths School of Food and wine has also taken our quality to another level, allowing us to develop ranges that are truly innovative.
Pandora’s box has well and truly opened and customers now know they can buy own label without compromising on price or quality. IGD data suggests more than a third of consumers expect to buy more mid-tier ranges this year. Where the economic downturn may have eroded trust in many big organisations, retailers are in the privileged position of being able to deliver this - and build loyalty.
I am proud of Asda’s continued commitment to demonstrating that great quality products accessible to all is not just an ideal, but a reality.
Stephen Smith is chief marketing officer at Asda
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