Private Labels Gaining Share as Economy Struggles

According to The Nielsen Company, store brands are up 10% to $84.4 billion in annual sales across categories. And as the economy continues to struggle, it’s likely that more consumers will continue replacing their branded products with private label equivalents.

And today’s private brand labels aren’t the cheap alternative they were once considered. These products range from items that appeal to the economical and price-point oriented shopper, as well as gourmet and upscale items for the more culinary inclined shopper.

But with national brands one of the points of differentiation is trust. Many national brands have been in existence for years, or even decades and so consumers have been using them for a long time with consistent positive results. And aren’t willing to take a chance on something new and unknown.

In recent years both sides have come to the realization that in order to maintain or win new customers they need to create a positive brand experience for the consumers. And so the competition begins. With national brands looking to innovate and win-back the consumer, and retailers investing in their own brands more than ever, the battle between store brands and national brands is sure to get interesting.

And ultimately it is a win-win situation for the consumer, because both brands need to remain dedicated to providing a quality product that the shopper will want to buy again, and again.

Are there any national brands you just can’t give up? Or how about private label brands you’ve fallen in love with?