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Accenture: U.S. Shoppers Prove Reluctant to Return to Old Buying Habits
July 16, 2012
By Rob Starr, Content Manager, Big4.com
The threat of store-brands – also known as private-label or generic products – to brand-name products is not going away. According to new Accenture research, Two thirds (64 percent) of shoppers surveyed admitted that their grocery carts were at least half full of store-brand products, and 39 percent said they have increased their purchase of store-brands in recent years as a result of the tough economic times.
The Accenture study concludes that the growing perception of trust, quality and preference for private-label products should be of most concern to consumer goods companies that are competing with stores for the same shelf space. Half (50 percent) of consumers surveyed buy store-brand products because they perceive the quality to be just as good as the brand-name equivalent, 42 percent buy a private-label product because they “trust” that particular store’s brand, and 28 percent simply prefer the store-brand product to the brand-name product. In fact, only 9 percent claimed not to buy store-brands because they felt that the quality or taste was inferior to the brand-name product.
The study found that consumers believe that stores have improved the variety and appeal of their range of store brands. Almost half (48 percent) of shoppers believe that stores now offer a greater number and variety of store-brand products, and more than one third (36 percent) see store-brand products as simply another brand on the shelf.
Bob Berkey, from Accenture’s Consumer Goods & Services practice commented:
“Consumer goods companies must respond to the threat of increasing competition from store-brands as market position and profitability are at stake,” he said. “Extreme competition between retailers and consumer goods companies can result in inefficiencies and waste for manufacturers and retailers, and undifferentiated products for the consumer. Consumer goods companies must develop a balanced strategy of collaboration with retailers in some areas and competition in others. This new dynamic – where competitors become partners – will require a considered focus from manufacturers.”