retail news in context, analysis with attitude

Ipsos is out with a new study about private brand penetration in the US, reaching three basic conclusions:

“Each year since 2009, the majority of global consumers have perceived store brands to be the same as or better than national brands on all attributes.”

“From 2009 to 2010, store brands slipped in all areas – with no indications of improvement in 2011 for value, convenience, meeting needs, being good for the family, and being requested by the family.”

“From 2010 to 2011, store brands gained ground in consumers’ minds in the areas where national brands tended to be strongest: quality, innovativeness, uniqueness and packaging.”

While the conclusions are a mixed bag - with store brands doing well on some fronts and slipping in others, Gill Aitchison, President, Ipsos Marketing, Global Shopper & Retail Research, says that it remains clear that “national brands must now battle store brands on all fronts – it’s not just a value game anymore. National brands must vehemently protect their image for providing higher-quality and more innovative products than store brands. With retailers focusing more on the product development and marketing of store brands, national brands are going to need to work even harder to differentiate their brands with breakthrough innovations, more standout packaging and true product superiority. Bringing in the voice of the consumer, digging for deeper consumer insights, and leveraging leading-edge marketing techniques will be instrumental to winning over the shopper at the critical moment of point of purchase in order to win the ongoing battle against store brands.”
KC's View:
They’re not going away. They’re only going to get better. And if retailers are smart, they are going to continue to invest in creating private brands that will reflect positively on their companies and build connections with their shoppers.