Comments on: Private Brand: Trading Down or Shopping Smarter?

By: Kevin Mahon

Kevin Mahon — Thu, 05 Nov 2009 13:11:15 +0000

It is a trade-down when a consumer spends 20% less on a private label brand than a national brand; the retailer is generating less dollars.

Private Brands enable consumers to spend less dollars. They have not been proven to enable retailers to grow a larger category or attract swithchers from competing retailers.

Retailers have been very aggressive in expanding Private Label share of shelf and promotions. We need a better understanding of net category growth from all of this activity.

By: carl bortle

carl bortle — Wed, 24 Jun 2009 19:11:21 +0000

I think the quality of private label has risen to the level of being close to the national brands, but the (basic) label quality leaves alot to be desired but are going after the lowest price shopper. Unfortuately, sopme of the chains are cutting back on the shelf space for the national brands in lieu of their private label.

By: Thomas Becker

Thomas Becker — Wed, 17 Jun 2009 19:26:20 +0000

Mr. Miller is spot on. Private Label is no longer a negotiation with oneself to accept less by paying less. The market leaders in Private Label are offering more for less — especially where there is top-notch talent in place with a clear track and vision.

The evolution of Private Brands from white label generic to upscale, better-than-national brand is continuing. In many companies, smart marketers are leading the charge and building very strong brands — and it is not all due to the fact that the store controls shelf placement and promotional plans.

In other stores, however, there is still the “good enough” approach with the expectation that consumers will accept less because the product is a private brand. I encourage that we, as guardians of private label, continue to push for better, more innovative products within the private brands we manage — not settle for “good enough”. Such work will not hurt strong national brands — it will only help them to produce better, more innovative products as well.

Thanks Alex — excellent commentary.

By: Michael Chrisner

Michael Chrisner — Mon, 15 Jun 2009 16:20:16 +0000

Enjoyed the post, Alex. Private labels have certainly come a long way. I remember when Milton Glaser was challenged with the in-store packaging and identity of the now-defunct Grand Union grocery stores, making their understated look its own clever cache—it was brilliant! Or when famous New York City’s Strand Book Store relies on a heritage of brand presence by NOT being designed at all—rather a “non-designed” look that has distinguished its place in the crowded marketplace.
As for the Trading Down/Shopping Smarter discussion, I find it somewhat irrelevant. The packaging and overall private label look is so well designed that it’s really camouflage now. Whereby the consumer can simply choose their brand of choice for a perfectly fine, comparable product—and today, that’s likely to be price-based. Is there any research out there that shows what percentage of private label buyers are unaware of their “in-house” allegiance?
I believe this discussion could easily resurface as to whether good design is the compelling second purchasing factor after price. Status of a popular “name” brand is still an influence, but a beautiful package can parlay its smart design into an impulse purchase and temporarily belie its not-a-household-name-yet handicap. The proof will be in luring that new-bie into your tribe for that follow-up purchase. Design matters.

By: Lisa Radin

Lisa Radin — Fri, 12 Jun 2009 16:49:12 +0000

As a grocery shopper, I might disagree that ‘more choices’ is a good thing. Becomes ‘sea of color’ – almost overwhelming for shopper who enters store on ‘mapquest overdrive’ – with limited time and wanting to get chore done. More choices demands more in-aisle reading — and while I go to the library – don’t expect to do this in the grocery aisle.

The only ‘reading issue’ which has impacted me – finding foods for allergic child — forced me to read packages and always seeking new foods to introduce.

Perhaps, a food / consumer researcher — those with special needs interests – from lactose intolerant, gluten-free, food allergic, or even gourmet cook – might be more of package/label reader than casual shopper. In that case, more is better. But for most, ‘less is more’.