Chain Store Age Mentions First Insight | Economic Strain: Food Bill Gets Unruly
Amid ongoing high prices, many consumers are making budget-friendly decisions at the grocery store – many without even realizing it.
According to a new survey from AI-powered consumer feedback firm First Insight, nearly three-quarters (71%) of consumers believed they could recognize a private label when making a purchase. However, 72% were unable to do so when shown side-by-side images of store brand and national brand products.
Overall, private label brands have come a long way with winning consumers over. The overwhelming majority (84%) of consumers now trust in the quality of private label products more or the same as national brands, while more than half (52%) say they’ve been influenced to try a store-brand product by in-store promotions, packaging, displays or marketing materials. Seventy-seven percent of consumers aren’t concerned with how they are perceived for purchasing private label products.
Nearly half (47%) of consumers surveyed said they have tried a private label product specifically because it was a dupe of a name-brand item. Almost half (44%) of consumers, and 70% of those earning more than $150k per year, said they are more likely to try a private label if it’s marketed as a dupe of a high-end product.
While 48% of consumers still identify as brand loyal, more than half say they are either brand curious (32%) or motivated by price and savings (20%). More than seven-in-10 (71%) consumers say they would be willing to try a private brand if their preferred national brand was out of stock.
First Insight found that once a consumer makes the switch and feels satisfied, they rarely go back. Nearly half (45%) of those surveyed said they have permanently switched from a national brand to a private label when the product met or exceeded expectations.
Two-thirds (66%) of consumers say they recommend private label products to friends and family, and 34% say they’re more likely to shop at a retailer specifically because of its private label offerings.
“Shoppers aren’t loyal to brand names the way they used to be,” said Greg Petro, CEO of First Insight. “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. 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.”
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