Shoppers Embracing Store Brands, Study Finds
Despite the steady wave of brand name products appearing on U.S. shelves, more American consumers are turning to store brands when shopping for innovative new products, according to the results of a study released Monday by market research firm Mintel. Of the 33,000 new products released last year in the U.S., 80 percent of them were soon dropped due to slow sales.
House brand products, on the other hand, have been going great guns. According to the study, which focused specifically on grocery products, 41 percent of shoppers now call themselves frequent store brand buyers, up from 36 percent five years ago. In 1992, only 12 percent of consumers admitted to frequently buying in-house brands.
It all has to do with the realities of retail, said Brian Sharoff, president of the Private Label Manufacturers Association that sponsored the study.
"One, the retailer owns the shelf and can keep products in stock longer," he said. "Two, the retailer is closer to shoppers and understands their needs. And three, retailers can very quickly produce products in growth categories that tap into changing tastes and trends."
And this extends to CE retailers. Rather than struggling against the stigma of low-quality store brands, in-house products like Best Buy's Insignia line are selling briskly, buoyed by low price points.
"The research clearly points to the growing awareness and popularity of store brands," Sharoff said. "It also continues to show a fundamental change in attitude toward private label products."
|
|
