Private-Label Brands On A Par With Branded Goods
UK – Almost a third of shoppers are buying own-label products more often than before as research shows shoppers consider retailer own-brands to be as good as, or better than, branded equivalents.
The majority of more than 1,000 consumers questioned by Perception Research Services said they feel positive about buying own-label products and 63% consider them to be the same quality as national brands — with 14% saying they are better quality. Product choices are being affected by austerity measures in the UK, with 89% of people saying that the economic climate has affected their spending.
Categories where own-label is most popular are dairy, pre-packed bakery, frozen vegetables and biscuits. Further results show that a third of shoppers only buy own-label cereal, crisps, personal cleaning products and alcoholic drinks. People shopping at discount retailers such as Aldi and Lidl report being the most positive about buying own label goods (68%).
Where once own brands may have been a cause of embarrassment now shoppers are proud of their thrift: only 3% of people are embarrassed about buying own-label goods and the majority (59%) report feeling positive (e.g. ‘savvy’, ‘happy’, ‘proud’) about buying own-label. Discount shoppers (whose main supermarkets are Aldi and Lidl) report feeling the most positive (68%) about buying own-label goods compared with other supermarkets’ shoppers, as are younger shoppers (65% of 25-34 year-olds feel positive about buying own-label).
The study found that only 10% of people do not purchase ‘regular’ own-brand products, 30% do not purchase ‘finest’ own-brand products and 31% do not purchase ‘value’ own-brand products. In general, own-label drinks (alcoholic and non-alcoholic) are unpopular in all three tiers. Ready-made meals (frozen and chilled) and desserts are popular in the ‘regular’ and ‘finest’ tiers, but unpopular in the ‘value’ tier.
Own-label pre-packed bakery fairs particularly well – 20% of shoppers think own-label is better quality than national branded pre-packed bakery. Own-brand frozen vegetables also have a good reputation – 71% think they are the same quality as national brands. Branded goods are most likely viewed as better quality in the personal cleaning products and alcoholic drinks categories.