Is Private Brand Growth a Symptom of Recession?

Family Dollar Bandages
Family Dollar has benefited from the current economic problems.

The mainstream media continues to attribute the current growth Private Brand to the recession. This excerpt from an article published this past week in Inc. magazine is no exception.

Thrifty Consumers Turn to Store Brands

The recession offers a boost to private-label manufacturers of store brands.
More consumers are choosing store-brand goods over pricey, name-brand products—another consequence of the recession—which is good news for the manufacturers who produce them, according to a recent report by Chicago-based market research firm Information Resources (IRI).

Store brands’ market share has risen to 17.5 percent over the past two years after hovering around 16 percent for over a decade. “This is significant because you’re looking at a global, $300 billion-consumer packaged goods industry,” says Brent Baarda, director of consulting and innovation at IRI.

But while the recession is driving consumers to sample private label offerings, they’re finding they like what they taste. Of 1,500 surveyed consumers, IRI found nearly 80 percent had positive attitudes toward store brands, versus 73 percent a year ago. Four out of five consumers surveyed believe store brands are just as high-quality as a brand name. “The spike will be sustainable, because consumers are having positive experiences,” Baarda says.

Read the entire article.

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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.