CPG Marketing Trends: The Role of Name Brand vs. Store Label
Millennials, especially Primary Grocery Shoppers, are very savvy when it comes to the role of name brands vs. store brands. They approach shopping for brands in terms of creating value or improving their image.
On one hand, 60% of Millennial PGSs believe “store brand or other private label brands are just as good as name brand products.” A lower percentage of non-Millennials agree. On the other hand, 72% of Millennial shoppers think “store brand or private label brands are okay for some items, but not others” and 51% of them report buying brands “that reflect their style or personality.”
Millennials spend more money on name brands that help define who they are, thus using the brand as a badge for their beliefs and values. In order to save money to fund these more expensive brand purchases, they trade down to store brand for selected items.
The reason Millennials limit their amount of private brand purchases is because they perceive that grocery stores do not have enough variety when it comes to private brand offers. They also think that there are some products where the savings on private brands is just not worth the perceived decrease in product quality. This may be more of a result of national brands’ lack of marketing to Millennials just as many Millennials are beginning to buy their own groceries.
The key takeaway? It’s a wake-up call for national brands to start targeting Millennials with their messages.