In the UK grocery market, own-brand products have transitioned over the last 100 years from mere cheaper alternatives to branded goods to becoming central pillars of supermarket strategies. With private-label sales growing at double the rate of branded goods in 2023, retailers are increasingly focusing on enhancing their own-label offerings. Amidst this evolution, one potent yet often underutilised tool stands out: the strategic use of product reviews.
Economic fluctuations and shifting consumer preferences have always led shoppers to seek value without compromising quality. This paradigm shift has propelled own-brand products to the forefront, with private labels accounting for a significant portion of total Fast-Moving Consumer Goods (FMCG) value sales in Western Europe. UK supermarkets have responded by expanding their own-label ranges and innovating to meet and exceed consumer expectations.
* Original Sainsbury's Red Label Tea From the Sainsbury's Archive
Here's a top-line overview of the evolution of own-label supermarket products in the UK from 1900 to 2020:
Early 20th Century – Introduction of Own-Label Products: In 1903, Sainsbury's launched its own-label teas, including the enduring Red Label, marking one of the earliest instances of supermarket-branded products in the UK. Sainsbury Archive
Mid-20th Century – Expansion and Design Innovation: The 1960s saw a significant expansion of own-label ranges. Sainsbury's, for example, introduced over 1,000 new own-brand products during this decade. They employed bold, pop-art-inspired packaging designs to enhance the appeal, elevating the perception of own-label goods. London Museum
1990s – Emergence of Value Ranges: In response to economic challenges, supermarkets introduced budget-friendly own-label lines. Tesco's "Value" range, launched in 1993, is a notable example, offering basic products at lower prices to cater to cost-conscious consumers. International Business Times
2000s – Premiumisation and Quality Focus: Supermarkets began developing premium own-label ranges, such as Tesco's "Finest" and Sainsbury's "Taste the Difference." These lines aimed to match or surpass the quality of national brands, shifting consumer perceptions of own-label products.
2010s–2020 – Diversification and Market Dominance: Own-label products diversified into various categories, including health-conscious and plant-based options. By 2020, own-label items accounted for a significant portion of supermarket sales, reflecting their established presence and consumer trust.
This evolution highlights how UK supermarkets have strategically developed their own-label products over the past century to meet changing consumer needs and market conditions.
Product reviews have become integral to consumer decision-making in today's digital era. Shoppers frequently consult reviews to assess product quality, functionality, and satisfaction. An analysis by CheckoutSmart highlighted that many FMCG products in UK supermarkets lack sufficient reviews, indicating a significant opportunity for retailers to bridge this gap.
We’ve analysed Tesco, Sainsbury's and ASDA websites online and found that:
Shoppers will check reviews for own-label products, especially when comparing them to branded alternatives and seeking to trade down. A set of reviews that is "To Standard"* will help own-label products compete on more than just price, highlighting quality, taste, or performance advantages.
*At CheckoutSmart, we help your products get "To Standard" and stay there as part of our SmartReputation Always On program. This means they have at least 30 reviews, the latest three fresh (less than six months old), and are representative of the average for a whole year.
For UK supermarkets, actively encouraging and showcasing genuine customer reviews for own-brand products can yield multifaceted benefits:
Building Trust and Credibility: Authentic reviews act as social proof, reassuring potential buyers about product quality and reliability.
Enhancing Product Visibility: Products adorned with numerous positive reviews often achieve higher rankings in search results on retailer websites and external search engines, leading to increased exposure and organic traffic.
Driving Sales Growth: Positive reviews can directly influence purchasing decisions, leading to higher conversion rates and bolstered sales figures.
Informing Product Development: Customer feedback offers invaluable insights into product strengths and areas necessitating improvement, guiding future product enhancements and innovations.
Differentiating in a Competitive Market: In a saturated market, a robust portfolio of positive reviews can distinguish own-brand products from competitors, positioning them as preferred choices among consumers.
To effectively leverage the power of product reviews, supermarkets can implement the following strategies:
Facilitate Seamless Review Submission: Integrate intuitive and user-friendly interfaces on websites and mobile applications to simplify the process for customers to leave reviews.
Actively Monitor and Respond: Regularly monitor reviews and engage with customers by responding to their feedback, demonstrating a commitment to quality and customer satisfaction.
Highlight Reviews in Marketing Campaigns: Feature positive reviews prominently in marketing materials and advertising campaigns to showcase customer satisfaction and build brand reputation.
Educate Consumers on the Value of Reviews: Inform customers about how their reviews contribute to product improvement and assist fellow shoppers, fostering a community of shared insights.
Ensure Transparency and Authenticity: Maintain the integrity of the review system by ensuring that all reviews are genuine and unaltered, thereby building long-term trust with consumers.
Several U.S. supermarkets and grocery retailers have effectively incorporated customer reviews into their marketing campaigns to enhance credibility and drive sales. Here are some notable examples:
1. Wegmans has utilised customer reviews in its email marketing campaigns. It provides social proof by featuring positive customer testimonials and star ratings in promotional emails, encouraging recipients to explore and purchase featured products.
2. Trader Joe's has incorporated customer reviews into its in-store signage and product displays. Highlighting customer favourites and including snippets of reviews on shelf tags guides shoppers toward popular products and enhances the shopping experience with peer recommendations.
3. Whole Foods Market has featured customer reviews in its digital marketing efforts, particularly on social media platforms. By sharing customer testimonials and reviews in its posts, it engages with its audience and showcases the quality of its products through authentic customer experiences.
These examples demonstrate how U.S. supermarkets leverage customer reviews across various marketing channels to build trust, engage customers, and drive sales.
While the benefits are substantial, supermarkets may encounter challenges in establishing a robust review system:
Encouraging Participation: Customers may be reluctant to leave reviews. Address this by simplifying the review process.
Get Expert Help: Consider using an effective third party, such as CheckoutSmart, to supplement your current programs. We can deliver reviews quickly without technical integration and no cost to the retailer.
Ensuring Authenticity: Fake reviews can undermine trust. Implement measures to verify the authenticity of reviews and maintain the system's integrity.
As own-brand products remain strategically critical to UK supermarkets, they stand ready to harness the power of product reviews. By actively encouraging, monitoring, and utilising customer feedback, retailers can enhance the appeal and credibility of their own-label offerings and foster deeper customer relationships.
This strategic emphasis on reviews can drive sustained growth, bolster market differentiation, and solidify a supermarket's position as a trusted provider of quality own-brand products in an increasingly competitive landscape.
Contact us to find out more about how CheckoutSmart can help retailers and own-label manufacturers level up the review playing field: