Gone are the days when store brands are seen as just a cheap alternative
Are we heading into the golden age of Private Label, Brands? A new report from Mintel highlights the notion that positive perceptions of these products are taking hold - particularly with Millennials.
According to the report 42% of Millennials (ages 18-36) agree that store brand food products are more innovative than name-brand products. In fact, Millennials are more likely to buy store brand foods in general (97% versus 94% of all U.S. shoppers). Furthermore, 37% of U.S. shoppers as a whole say they prefer to buy store brand products over brand name products.
The old assumption that consumers feel private-label brands are inferior, but buy them for cost reasons, is clearly outdated as now, nearly two-thirds (63%) of store brand buyers — including 70% of Millennials — agree that these products are higher-quality than they used to be. Many shoppers also agree that store brands hold their weight against their name brand counterparts in flavor, packaging and variety of product offerings.
And finally, we know that for consumers, trust is key and in this report data showed that nearly 70% of all store brand shoppers agree trust certain store brands more than others, and 64% said that once they’ve tried one store brand product, they are likely to try others.
This is good news for supermarkets with their own brands, and other private label brands. Consumers are willing to look beyond the big name brands, what they want are names they can trust and brands that show an interest in what they want, healthier eating, better for you foods, transparent labeling. Private label brands are no longer the cheap, lesser option. As this report shows, they are becoming the preferred option.