One of the trends to emerge out of the COVID-19 pandemic is the rise of e-commerce and online shopping. Along with the growth in online shopping spending came the increased use of digital discounts and promotional codes — and it's having a direct impact on private label products.
CouponFollow, a group that tracks coupon codes and aims to help consumers save money, released itslatest research on couponing trendswith the goal of helping retailers better understand the role of digital discounts in how Americans shop online in 2021, and determine whether or not the shopping patterns of the last 12 months are here to stay. The trends impact how retailers orient their selections, including for private label products.
"Today, there are more private labels on the market than ever before,” Marc Mezzacca, founder of CouponFollow, told Store Brands. “Not only are there an increasing number of private label products, but many have also transformed into ‘premium’ goods, building a solid reputation with customers. Offering coupons or discounts specifically for their store brand products is how large retailers might entice customers to try their private label products. According to our research, as many as two-thirds (66%) of consumers claim to discover new brands through coupons. In fact, as many as 82% of consumers are more likely to try a new product or brand if a coupon is available."
CouponFollow says that combined with increasing brand loyalty for specific big-box retailers, such as Costco and Target, consumers are much more likely to forego purchasing nationally recognized brands when a store brand option is available because they know they’ll enjoy the quality and save money at the same time.
CouponFollow’s latest research shows four key findings about consumer habits.
Americans love discounts on fashion and food delivery
Clothing (59%), takeout (42%), and beauty/self-care (37%) were the top shopping categories for Americans that shop with coupons and promo codes. Meal delivery and pet supplies were tied for the fifth most common purchase type for promo code users (32%).
Almost everyone tries to find a discount
Nine in ten (96%) Americans stated they search for a promo code or a digital coupon before making an online purchase, with only 4% stating they never do. Furthermore, 83% have used a digital promo code at least once when shopping online and about three in four (73%) reported they love receiving digital coupons.
Discounts can boost brand loyalty
Around 73% admit that receiving discounts from brands makes them more loyal customers, two-thirds (66%) discover brands through promo codes, and equally, as many (66%) state they’d be more likely to visit a store in-person if they had a coupon to redeem there.
The price has to be right
Price is the most significant purchasing factor, with 84% reporting it’s part of their consideration and 61% saying it’s the single most important factor for them. Two-thirds (66%) of Americans became more price-conscious in the last 12 months.