Consumer Confidence In Store Brands Remains Strong
Sales of private label products continue to grow, and many retailers today are working to boost their own brands through a variety of marketing efforts designed to raise awareness with consumers.
But is it working?
The results of a new study from First Insight, "The Quiet Takeover of Private Label," show that the brand-building efforts of retailers for their private brands is having an impact. The survey revealed that a majority of consumers are unable to distinguish between a store brand and a national brand.
According to the report, 71% of the 1,267 consumers surveyed said they believed they could recognize a private label when making a purchase. Despite that confidence, 72% were unable to do so when shown side-by-side images of store brand and national brand products.
While a significant number of consumers had difficulty differentiating private brand or national brand products, they were clear on their growing affinity for store brands. In the survey, 84% of consumers said their trust in store brand products is the same as or more than national brands. Also, 52% said they have been influenced to try a store brand product by in-store promotions, packaging, displays, or marketing materials.
"Shoppers aren't loyal to brand names the way they used to be. They're loyal to price, quality, and marketing," said Greg Petro, CEO of First Insight. "When a national brand stumbles, it opens up an opportunity for private labels to grow their market share, but only for those with products that feel intentional, well-designed, and trustworthy."
Other notable findings in the report include:
- 77% of consumers aren’t concerned with how they’re perceived for purchasing private label products.
- Smart imitation has become a badge of savvy shopping, with nearly half (47%) of consumers saying they’ve tried a private label product specifically because it was a dupe of a name-brand item.
- 44% of consumers and 70% of those earning more than $150,000 per year said they’re more likely to try a private label if it’s marketed as a dupe of a high-end product.
- More than 7 in 10 consumers say they would be willing to try a private label if their preferred national brand were out of stock.
- 45% of consumers said they’ve permanently switched from a national brand to a private label when the product met or exceeded expectations.
- 66% of consumers said they recommend private label products to friends and family, and 34% said they’re more likely to shop at a retailer specifically because of its private label offerings.
First Insight is a global retail platform that uses its native AI to turn real-time customer feedback into strategies for brands and retailers.
