Page 19 - Sphere No.24 (Mar 2009)

SPHERE 17
presence in the UK, where the market has grown rapidly
in the last few years. In 2006, they accounted for 40 per
cent of grocery sales, according to estimates by mar-
ket researcher Key Note, up from 38.5 per cent in
2002, and will rise to 42.2 per cent by 2011.
The trend is also catching on in Hong
Kong. For example, Fortress is the market
leader of own brand electronics and home
appliances and its air-conditioners and re-
frigerators have ranked among the most
favoured brands since 2001. PARKnSHOP
introduced its private label rice, Imperial
Banquet, back in 2005. It quickly became
one of the top sellers in the market and
continues to hold up well against other
named brands.
The premium quality of Imperial Ban-
quet has also helped it establish a reputation
as having the “best quality on shelf ” among
traditional Chinese food products. The brand
has already extended its range to cooking oil
and Chinese sauces, with more on the way.
While private labels and own brands are start-
ing to account for an increasing amount of market
share in Asia, the market is not as developed as in Eu-
rope and the Americas, said Anne Chen, A S Watson’s
Group Project Director, who co-ordinates the company’s
private label brand development. “Such labels are now very
well established in the West, where they debuted, but in Asia it’s
a different story,” she said. “Sometimes they are viewed as inferior
products, so it’s important to be clear that we are offering customers qual-
ity as good as, if not better than, the named brands.”
Watsons Your Personal Store, the Group’s health and beauty retail chain in Asia, has
also tasted initial successes. One of its brands, the Collagen skin care range, is flying
off the shelves, particularly in Mainland China where 2008 sales were up nearly 30 per
cent year-on-year. This range has now been introduced in Hong Kong and was so well
received by customers that it sold out in just a few weeks.
PARKnSHOP’s
Imperial
Banquet rice
quickly
became one
of the top
sellers in the
market
✔
F O O D
All Consumers
25-34 yrs
35-44 yrs
45-54 yrs
55+ yrs
Consumers trying cheaper
personal care brands
%
55
54
53
52
51
50
49
48
47
46
45
52% 52%
50%
49%
46%
source:YouGov
BEVERAGE