Private Label Products Loom Large in Consumer Purchase Plans

by | 2 minute read

Even as national brand CPG marketers plot to regain their lost market share with the introduction of new and improved products and ad campaigns,  consumers have their own plans.  And for many consumers, an improved economy will not necessarily lead to once again purchasing their favorite brands. Instead, many will continue to reach for private labels according to the recently released GfK Custom Research North America for the Private Label Manufacturers Association report.

Per this report, buying plans of consumers break out as follows:

  • The economy is important or very important when deciding whether to purchase private label: 75%
  • Plan to continue buying private label products: 62%
  • Buy private label products frequently: 57% (up from 55% last year)
  • More aware of store brands than one year ago: 51%
  • New brand store selections compare very favorably to national brands: 49%
  • Intend to spend less on groceries in the months ahead: 51%

Good economic news has begun to appear across a number of industries. But economists caution that high unemployment rates are likely to continue through the rest of 2010 and into 2011. In addition, if consumers find work that pays at a lower rate than previously, their shift to private label products may endure.

[Sources: Recession, Recovery & Store Brands. Private Label Manufacturers Association. February 2010. Web. 22 Apr. 2010; Byron, Ellen. Consumer-Goods Makers Pour Out Ads. Wall Street Journal. 12 Apr. 2010. Web. 19 Apr. 2010]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.