Tuesday, November 14, 2006

Private label demand increases

A study shows what is probably pretty obvious to every shopper and marketer -- that the acceptance of private label products is steadily increasing. (Though the study should be read with some degree of skepticism, since it was funded by the Private Label Manufacturers Association -- not an unbiased observer).

Some highlights:
  • About one-fifth of shoppers report that half or more of their grocery purchases are private label products.
  • 41% describe themselves as "frequent" purchasers of PL products -- fifteen years ago, it was 12%.
  • "Almost 70%" say that PL products are roughly equal in quality to national brands.
The last two items raise a question: If 70% think PL products are just as good, then why aren't 70% "frequent buyers" of PL?

The study also found that shoppers are increasing their purchases of PL products outside the CPG area.
Approximately one-fifth of those surveyed reported that they frequently buy private label HBC products, home office products, household products, and home improvement products irrespective of the channel of trade in which they are sold.

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