Consumers are definitely giving retailers permission to grow their private brands. The real question is will retailers grow private brand value or simply grow more private labels? In the age of mega-private brands, this trend is giving national CPG brand managers some added anxiety these days. It also presents some relationship challenges for retailers to grow the value trusted CPG brands bring to their customers.
According to a report published this past year by consulting firm Deloitte, consumer’s perceptions and attitudes toward private brands are changing significantly; and offers insight into the notion that spending less for private brands doesn’t mean consumers are settling for less from private brands. According to the report, only one-third of the respondents endorsed the statement “ I often feel that I am sacrificing when I purchase a store brand instead of a national brand”. This is no surprise when one stops to think that many consumers today believe that store brands and national brand are essentially made of the same stuff. According to the report, 80 percent believe the statement “most store brands are manufactured by the national brands”.
The report further suggests that the current economic climate has made consumers more discerning about the brands they prefer. 75 percent of respondents agreed “ these economic times have made me more aware of which brands I care about and which ones are less important to me”.
Read more on this trend here, also note that AaramShop is one of the few platforms that does not support private labels or open commodities.