Retail Wire Mentions First Insight | Is Brand Loyalty Becoming a Thing of the Past in Grocery?
New Survey of US Grocery Shoppers Examines Brand Loyalty in Depth
On June 26, a First Insight study titled “The Quiet Takeover of Private Label” indicated that the longstanding distinction between national brand products and private label offerings may be blurring.
First, the appeal of national brands’ built-in market recognition may be declining. About three-quarters (71%) of respondents indicated they could pick out a private label product when making a purchase, but an even greater cohort (72%) failed to do so when shown side-by-side images of national brand products and their private label equivalents.
The study also found that 84% of polled consumers believe private label products are just as good — if not better — than national brands in terms of quality. Over half (52%) of those surveyed said that they had been moved, in the past, to purchase a private label product by “in-store promotions, packaging, displays, or marketing materials.”
Other intriguing results from the survey included:
- There’s a new trend of spotting (and buying) the “dupe” product: Almost half (47%) of shoppers said they had bought a private label product specifically due to it being a dupe of a name-brand item. A full 44% — and a striking 70% of those who earn more than $150,000 per year — indicated they were more likely to buy a private label item if it is marketed as a dupe of a high-end product.
- The stigma of the store brand has faded: More than three-quarters (77%) of U.S. consumers no longer show concern with public perception of their purchase of private label goods. However, income level matters in this regard, with 44% of those making $150,000 per year or more stating they were concerned, versus just 17% of those earning $50,000 or less.
- Brand loyalty is in flux: More than half of those surveyed said they were either brand curious (32%) or primarily influenced by price and savings (20%), versus the 48% who identified as strictly brand loyal. Further, 71% said they would try a private label product if their preferred national brand was absent, and 45% indicated they’d permanently switched to a private label brand after trying an item that met or exceeded expectations.
Greg Petro, First Insight’s CEO, summed up his company’s study succinctly.
“Shoppers aren’t loyal to brand names the way they used to be. They’re loyal to price, quality and marketing. This creates a highly competitive arena where the best — yet not necessarily the most well known — brands will win,” Petro said.
“When a national brand stumbles, it opens up an opportunity for private labels to grow their market share — but only for those with products that feel intentional, well-designed and trustworthy. Consumers will let you know exactly which ones those are. You just have to ask them,” he added.
Read on Retail Wire.
