Shoppers' migration to private label goods following the 2008 recession wasn't much of a surprise: they offered a cost-cutting option for commonly bought goods where there wasn't a perceived difference in quality (e.g., milk, paper products, OTC's). The prevailing wisdom was that when shoppers started spending more freely, they would switch back to name brands. Instead, retailers started expanding their private label offerings—new categories, product variety, tiered offerings—and shoppers' perception of name brand superiority declined. It now seems as though there is a new normal when it comes to CPG that involves more private label goods in the basket. In fact, 32% of shoppers say they are currently buying more private label brands than before—and only 6.5% (a new low) say they are currently buy more but plan to switch back to name brands in the future.
In this edition of The Checkout, we'll explore the realities of this new private label reality and what it means for name brands. Topics covered include: the core equities that contribute to the private label vs. name brand decision (and how they differ across consumer demographics); how perceptions of name brands have shifted; private label/name brand purchase behavior across income brackets.
Click here to learn more about private label's new normal in the latest edition of The Checkout.