National Brand or Private Label? 72% of Consumers Can’t Tell the Difference

Produce Business Mentions First Insight | National Brand or Private Label? 72% of Consumers Can't Tell the Difference

Once seen merely as budget-friendly alternatives to national brands, private labels — branded products retailers sell exclusively in their own stores — have quietly transformed into trusted staples embraced by shoppers well beyond the cost-conscious consumer.

According to First Insight’s The Quiet Takeover of Private Label, 84% of shoppers now say they trust the quality of store brands as much as, or more than, national ones. This shift is no accident, but driven by the increased investment retailers are making into the quality, appearance and marketing of their private labels. This includes everything from elevated product design to amplified in-store marketing strategies.

The distinctions between national and store brands have become so subtle that most consumers can’t even tell them apart. While 71% of shoppers surveyed believed they could recognize a private label, 72% were unable to do so when shown side-by-side images of national and store-brand products.

The disconnect between what people assume private labels look like and what they actually find on shelves underscores exactly how much these products have evolved over the years.

First Insight’s new report reveals three major ways the private label landscape is evolving — and how it’s reshaping what consumers value and expect.

DUPE CULTURE IS DRIVING PRODUCT DISCOVERY

Dupe culture, or the trend of actively seeking out affordable alternatives to premium or designer products, has become a major driver of how consumers discover private label brands.

What once might have been dismissed as a cheap knockoff is now celebrated as a savvy find. Shoppers aren’t just open to alternatives — they’re actively seeking them out, especially when they feel like the quality of the product rivals the original.

In fact, nearly half (47%) of consumers say they’ve tried a private label product because it was marketed as a “dupe” of a high-end product. And this growing interest in dupes isn’t limited to budget-conscious shoppers, but a mindset that spans all income levels. Seventy percent of consumers earning $150,000 or more per year say they’re more likely to try a store-brand product if it’s marketed as a dupe.

The search for dupes is fueling increased attention on private labels. A well-executed private label “dupe” isn’t seen as a compromise — it’s a smart alternative.

PRIVATE LABELS ARE A BADGE OF SMART SHOPPING

The rise of dupe culture also reflects a broader shift in how consumers are redefining value. Consumers are becoming more intentional and discerning with their purchases, and instead of defaulting to familiar brand names, they’re comparing options and choosing products that offer the best value. And increasingly, what they value goes beyond price and includes the right balance of quality, design and usefulness in a product.

As more private label products deliver on those expectations, sometimes even outperforming national brands, the stigma once tied to store brands has largely disappeared. More than three in four consumers (77%) say they’re not concerned about how they’re perceived for buying store-brand products.

As consumers increasingly choose to purchase from private labels for their value, their loyalty to the retailers behind those products is also growing. One-third of shoppers (34%) say a retailer’s private label offerings are the reason they shop with the retailer. Store brands aren’t only driving shopper preference and foot traffic — they’re a source of serious revenue growth for retailers as well.

Brand loyalty isn’t what it used to be, and shoppers are more willing to switch than ever.

Today’s shoppers aren’t sticking with familiar names out of habit or because they’ve bought a brand for many years — they’re actively choosing what delivers the best quality, value, availability and overall experience every time they shop.

Whether it’s the fading stigma of private labels, the rise of dupe culture or broader changes in consumer priorities, one thing is clear: National brands can no longer count on loyalty by default. Today’s shoppers aren’t sticking with familiar names out of habit or because they’ve bought a brand for many years — they’re actively choosing what delivers the best quality, value, availability and overall experience every time they shop.

When private labels deliver on shoppers’ expectations, they earn both trust and repeat business. More than seven in 10 (71%) consumers say they’d be willing to try a private label if their preferred national brand was out of stock. And once they make the switch, many stick with it, as 45% say they’ve permanently converted to a private label product after finding it met or exceeded expectations.

That willingness to switch — and stay — signals that these private brands can more than fill availability gaps, but grow to be a go-to product for consumers when they consistently meet their needs for quality and value. And if consumers like one item from the brand, it can open them up to the larger product line and translate into a lasting relationship with the private label.

Private label brands aren’t a fallback for shoppers anymore — they’ve become, instead, a first choice for many. As consumers get more value-driven and open to alternatives, store brands are stepping up.

With quality, design and price all in the mix, a brand name matters less than the value of the product itself. For more and more shoppers, it’s no longer about who makes a product, it’s about what they get.

Read on Produce Business.