Name brands vs private label: It comes down to packaging
Edited by Lisa McTigue Pierce, Executive Editor -- Packaging Digest, 9/19/2013 11:52:25 AM
An ongoing shopper behavior study conducted by The Integer Group and M/A/R/C Research shows that shoppers seem to be keeping their private label shopping habits consistent with last year: 83 percent of shoppers are buying the same amount or more private label products now as they did a year ago.
Some shopper segments appear to be increasing their acceptance of private label with more than a third of shoppers still saying that they are buying more private-label brands than last year. Of that group, one in three shoppers say they will probably buy even more in the future.
While more than half of shoppers (54 percent) named quality as their top priority when shopping for everyday products, less than a third said that name brands are better quality or more reliable than private label. However, 56 percent of shoppers have the perception that name brand packaging is more attractive than private label.
"Shoppers realize that name brands no longer guarantee better quality and there is a significant decline in the gap between private label and brand name over the past few years. When it comes to differentiating the product itself, packaging might be the only thing left for name brands to stand out. Packaging affects shoppers' perceptions of the product and influences their decision. It's an area where name-brands have a competitive edge," says Craig Elston, svp, Insight & Strategy at The Integer Group.
Additional findings in the Private Label edition of The Checkout include:
• Only 29 percent of the survey's respondents feel strongly that national brands are of better quality, down from 36 percent last year and 43 percent in 2010;
• When asked what types of private label household goods shoppers are okay buying, 66 percent of respondents listed over-the-counter medicine at the top of the list with milk as a close second with 61 percent;
• The least purchased private label category in the study is pet food, with only 18 percent of shoppers saying they would be okay purchasing this as private label;
• 45 percent of shoppers believe that name brands have more new products, variety and innovations than private-label brands;
Data for The Checkout comes from a national survey conducted by Integer and M/A/R/C where consumers are asked about their shopping attitudes, shopping behaviors and economic outlook. Topics range from criteria shoppers use to select retailers, to which in-store stimulus is most likely to drive purchase, to factors that might lead shoppers to leave an aisle empty-handed. The Checkout is available for download at Integer's blog www.ShopperCulture.com.
Source: The Integer Group
Are you considering the fact that stores are reducing the number of branded products and increasing their private label offerings in store? The stores have higher profit margins and push their private labels under the premise of cost savings which is a compelling factor in this economy. I prefer name brands because of flavor that can't be duplicated in private labels. The lower cost is the driving factor for purchasing private label products. Toilet paper, paper towels are two products that name brand doesn't matter to me.
Karen Kerski - 2013-20-9 10:51:42 EDT
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