Private brands drive higher shopper satisfaction and loyalty

A new study from Stamford, Conn.-based Daymon Worldwide shows that a robust private brand program can drive consumers to make a special store trip and results in higher retailer loyalty and satisfaction. According to the study, 36 percent of consumers are likely to make a special trip to buy their primary retailer’s private brands. And these consumers indicate that they are more satisfied and loyal to the store, are more likely to make future shopping trips, would recommend the store to their friends/family, feel positive about the value they get for their money, and prefer the store overall.

“Our study reinforces a growing industry reality that private brands are gaining power as a must-have for success,” said Virginia Morris, Daymon Worldwide’s vice president, global consumer and innovation strategy. “Considering the growing acceptance of private brands across the globe, and increasing consumer apathy toward national brands, the time is now for retailers with existing private brands to leverage them to differentiate, drive affinity, keep shoppers coming back for more and attract new shoppers.

"Retailers without a private brand program need to invest in one now," she added. "For retailers that get it right, it means more than just surviving — it means thriving.”

Daymon Worldwide said it conducted the customized online study in quarter four of 2015 to determine the drivers for the increased penetration of private brands. The study involved 1,000 respondents age 18 and older —43 percent male and 57 percent female — nationally representative across U.S. regions.