U.S. Shoppers Find Little Difference Between Store and National Brands: Study
The latest report from the Hartman Group, “Private Label 2010: Redefining Meaning of Brand, shows that a lot of store brands are currently giving familiar national brands a real run for their money.
“In many instances, shoppers no longer can distinguish between national and private label brands,” said Michelle Barry, SVP at the Bellevue, Wash.-based research and consulting firm. “What’s most interesting is not so much the fact that it’s happening, but that people don’t really care that they don’t know the difference. The importance of branding and, to some extent, the badge value of brands in the past, is quickly giving way to a greater emphasis on the product and the overall experience controlled by the retailer.”
While most shoppers can correctly identify such legacy national brands such as Tropicana and Kashi, just one-fourth of consumers can correctly identify more recent or specialty brands as national brands, like Seventh Generation, Method and Muir Glen.
“A lot of retailers want ‘credit’ for their private label brands, which many aren’t receiving,” explained Barry. “This clearly points to new opportunities for private label brands to dominate newer categories such as the natural/organic marketplace, sustainability or functional foods. The ultimate success here will be in retailers’ ability to manage store brands as ‘brands’ rather than merely a product with a store name on the label.”
Also included in the report are findings on the impact of the economy on private label, the new consumer definition of “value,” the key drivers of private label and national brand usage, the private label adoption pathway, brand switching, and 31 category-level examples and brand scorecards.
“Private Label 2010: Redefining Meaning of Brand” additionally provides a glimpse into what the future holds for national brands competing against next-generation private label products, brands and marketing. For more information contact Blaine Becker at [email protected].
“In many instances, shoppers no longer can distinguish between national and private label brands,” said Michelle Barry, SVP at the Bellevue, Wash.-based research and consulting firm. “What’s most interesting is not so much the fact that it’s happening, but that people don’t really care that they don’t know the difference. The importance of branding and, to some extent, the badge value of brands in the past, is quickly giving way to a greater emphasis on the product and the overall experience controlled by the retailer.”
While most shoppers can correctly identify such legacy national brands such as Tropicana and Kashi, just one-fourth of consumers can correctly identify more recent or specialty brands as national brands, like Seventh Generation, Method and Muir Glen.
“A lot of retailers want ‘credit’ for their private label brands, which many aren’t receiving,” explained Barry. “This clearly points to new opportunities for private label brands to dominate newer categories such as the natural/organic marketplace, sustainability or functional foods. The ultimate success here will be in retailers’ ability to manage store brands as ‘brands’ rather than merely a product with a store name on the label.”
Also included in the report are findings on the impact of the economy on private label, the new consumer definition of “value,” the key drivers of private label and national brand usage, the private label adoption pathway, brand switching, and 31 category-level examples and brand scorecards.
“Private Label 2010: Redefining Meaning of Brand” additionally provides a glimpse into what the future holds for national brands competing against next-generation private label products, brands and marketing. For more information contact Blaine Becker at [email protected].