Research studies are showing that private brands are gaining ground in comparison to national brands. During recessions, customers are more open to new brands and are less brand loyal. Researching consumer attitudes toward private brands have showed us that most people are open to purchasing private brands.
Research found that private brands are gaining ground versus national brands, not just on price/value, but also on other dimensions that were once the sole domain of manufacturer brands.
- More than 60% of consumers agree that private brands offer better value than national/name brands
- 46% agree they often cannot tell the difference between private and national or advertised brands
- 48% agree they actually prefer private brands and actively seek them out
- 39% agree that private brands offer more unique items which makes them more interesting than national brands
What do retailers do with this information? 10 considerations:
1. Determine the strategic role of private brands vs. national brands in each category
2. Develop a clear brand positioning and architecture vision and strategy
3. Recognize all the costs and risks
4. Nail the pricing
5. Don't under or over-engineer the product/brand mix (packaging, product, pricing, and assortment)
6. Use stores as a learning lab
7. Manage SKUs
8. Create a consumer community for early development work
9. Measure both the health of your private brands, but also the impact they are having on your overall store brand perceptions
10. Measure both the health of your private brands, but also the impact they are having on your overall store brand perceptions
Research is definitely proving that private brands on the rise. But, it's what retailers do with this information is what will make a difference for their brand and their company.