Consumers Trade Name Brands for Private Brand

The UPI ran this now predictable article on consumers adoption of Private Brands, but it is nice to see traditional media continue to cover the story.

Consumer Corner: Value-conscious consumers are trading in brand names for private labels

What’s in a name? Big bucks, and more retailers are hoping to cash in.

With consumers in a money-saving mood but still seeking more upscale products, retailers are hoping to make inroads with private labels that encompass products with premium ingredients and more lucrative margins than brand names.

Planet Retail, which provides analysis to retail operations worldwide, estimates private labels make up about 21 percent of grocery and near-grocery (cleaning products, health and beauty aids and other non-food items found in grocery stores) sales, with penetration getting a boost from the recent recession. The Private Label Manufacturers Association estimated total sales at $86.4 billion annually in the United States.

Matthias Queck, Planet Retail research director, said the hardest thing for private labels to overcome is the perception of lower quality, a leftover from the 1970s push that saw economy labels introduced as an answer to the oil crisis.

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.