Own-Label Offerings - US Grocery
To gain information and data on private-label (own-label, own brand) offerings from major US grocery stores.
Why US Consumers Purchase Private Label Products
- Consumers view private labels as a main differentiating point between retailers. They feel since national brand offerings are "98% the same", own label is where a specific reatiler can stand out.
- 41% of consumers reported that they want more "better-for-you" private labels. 44% asked for more "unique attributes within private brands".
- Consumers perceive private labels as not just a cheaper price but a better value. They are wise to the fact that own labels are usually manufactured by the same companies as national brands.
- US consumers also feel like private labels are responding better to their desires, since retailers have a broader perspective of an entire shopping basket instead of vertical data.
- National brands can be slower to respond to consumer purchasing trends.
- Also, there is an implicit trust in store brands. Since consumers are already in that store, they trust the brand. Therefore, when faced with an abundance of choice, they can go with a label they recognize perhaps from other product lines.
- Overall goodwill towards a retailer also leads to increased private label purchase.
- 53% of consumers use store brand offerings to decide where to shop, compared to only 34% in 2011. The majority also say they prefer a store with a variety of own label products.
- One research study found that "consumers who exhibit a high level of general private-label proneness reveal a propensity to purchase private labels in a given category."
- Further, "relationship intensity, variety seeking, price consciousness, and promotion sensitivity are key determinants of the propensity to purchase private labels."
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