In an article this week from Adweek titled: “Study: Maybe Demand Isn’t So Pent Up”Mark Dolliver takes a look at a new report issued this month by Deloitte and the Harrison Group according to the article:
Attitudes toward private-label goods offer a telling example of consumers’ sense that spending less needn’t mean settling for less. Just one-third of the respondents endorsed the statement, “I often feel that I am sacrificing when I purchase a store brand instead of a national brand.” This is unsurprising when one notes that many people think the store brand and the national brand are the same stuff: 80 percent subscribed to the statement, “I believe that most store brands are manufactured by the traditional national brands.”
It’s not that the economy has made people indifferent to brands. Rather, it has made them more discriminating about brands. Seventy-five percent of respondents to the survey (fielded in April) agreed that “Going through these economic times has caused me to realize which brands I care about and which ones are less important to me.”
Consumers are definitely giving retailers permission to grow Private Brands, the real question is will they actually grow brands or simply grow labels with no chance to survive in an improved economy.