More shoppers prioritizing private label
Private label products are becoming more important to shoppers, with 53% saying they would pick a store for its own brands.
According to new research from Daymon, 81% of shoppers now buy private brand products on every or almost every shopping trip. Successful private labels also encourage innovation and price competition from national brands as consumers have come to trust store brands, the research shows.
“Private brands have entered a renaissance period that has allowed them to become more differentiated than ever before,” said Jim Holbrook, CEO, Daymon. “We are seeing that retailers with distinctive, one-of-a-kind Private Brands will survive and thrive, while those with national brand equivalents will struggle as competitive pressures mount.”
More than 2,000 U.S. shoppers were surveyed to gauge consumer sentiment about private brands. The findings show an increase in the perception of private brands versus national brands, with 85% stating that they trust private brand products at least as much as national brands. But, this is not just proven anecdotally. Private brand sales have increased by 4% or eight times more than national brand sales. To capitalize on this newfound reputation and to increase private brand purchases, coupons and in-store sampling should be considered, since consumers expressed these as their top two motivators for making purchases.