Coveo: Private Brands Impacting Loyalty, Shoppers Have High Standards for E-Commerce

A majority of shoppers in the United States and United Kingdom are buying more private brands in response to high food prices, with younger shoppers reporting themselves as less brand-loyal than Baby Boomers, according to a new survey from AI retail platform Coveo.

Based on a survey of 4,000 shoppers in the U.S. and U.K., the firm’s third-annual Ecommerce Relevance Report, found that 83% of respondents said they are relying on more affordable stores or buying more private label products, indicating that brand loyalty may be at risk for name brands. Consumers in the U.K. are less brand loyal and even more likely to buy private products than their U.S. counterparts (42% and 37% respectively). 

According to data from the Private Label Manufacturers Association (PLMA), the United Kingdom is among the European countries with the highest private label penetration (43%), preceded by only Switzerland (52%), The Netherlands (44%) Spain (43%).

"Shoppers expect their online experiences to be equal or better than in-store, yet many brands are not meeting these expectations," said Brian McGlynn, General Manager of Commerce Solutions, Coveo. "Consumers also prefer anonymity, which is a challenge for retailers who don't have the trust of their consumers. We found that there are economy-driven generational differences when it comes to brand loyalty and the shift towards private label products. But building trust is a key differentiator for building loyalty, and a great experience with your brand can still make a positive impact on that trust."

When it comes to shopping for food and nonfood products online, 93% of those surveyed said they expect their online shopping experience to be better than/equal to what they receive while in-store. Most (91%) said they encounter problems online, with nearly a third citing poor site performance (33%) and lack of findability (32%) as the top issues, followed by missing product information (27%) and disorganized navigation (26%).

For Gen Z shoppers, 96% report encountering problems on e-commerce sites. They are 46% more likely to be frustrated by lack of product discovery, nearly 13% more likely to be upset that they can’t discover new products and 11% more aggravated that the site doesn’t allow filtering.

According to Coveo’s report, shoppers show a strong preference for researching products before purchasing. A vast majority (79%) of respondents say that they conduct research online and on social media, including researching on a brand’s website, with 37% researching products online and purchasing in-store. However, 22% of shoppers complain that they don’t know if stock is available at their local store.

The full report can be found here.