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May 27

Written by: Kelsey Blackwell
5/27/2010 1:15 PM 

Along with the rest of America, I turned to private label products when the budget got tight. I expected to marginally enjoy the cheaper versions of my favorite jams and canned veggies, but was surprised to find in many cases what I was buying was just as good if not better than the name-brand counterpart. Now, with a little more cash in my pocket, I could easily go back to my old-shopping ways but my habits and “brands” have changed. According to a new report from Stamford, Conn.-based Consumer Edge Research, I’m not alone.

The company’s online survey of more than 2,500 consumers determined what if any products consumers are sticking with post-recession. Items that came out on top include household staples such as milk (not organic), cooking oil, bleach, paper napkins, spices, liquid hand soap, canned vegetables, paper towels, cheese and garbage bags.

Meanwhile, energy drinks, wine, sports drinks, canned/bottled tea, spirits/liquor, soy milk, beer, and contraceptives showed the least staying power. Considering these items are largely tied to enjoyment and/or quality standards this makes sense. Still, for many consumers private label is a name brand and consumers are attributing value to it—Consider Whole Foods 356, for example. If you’re thinking about a line, get on board with any of the staples mentioned above. Sales may be slowing but it appears certainly not halting anytime soon.
 

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3 comment(s) so far...

Re: How "sticky" is your private label?

Seems to me the real opportunity is in creating unique products that don't mimic a national brand. Once customers try that and like it, the only option is to come back to your store to get more.

Until we stop thinking about private label as a cheaper alternative to "real" brands, it will never be taken seriously as a threat to name brand products.

By Jeff Weidauer on   5/28/2010 11:18 AM

Re: How "sticky" is your private label?

Defnitely soem food for thought. When I have to cut corners I do just that or buy certain items from Xican@ owned grocery stores where I live in the Bay Area,Ca.

By Robert Trujillo/Tres on   6/3/2010 4:08 PM

Re: How "sticky" is your private label?

The idea that private label brands are mere copycats, cheaper versions of national brands no longer holds true. Today, private label manufacturers invest heavily in innovative formulas based on scientific research. They formulate products that have something "more" to offer than national brands. Meticulous attention to upholding high-quality manufacturing standards and their competitive edge on pricing continue to make store brands a popular choice amongst savvy consumers.

It’s pretty easy for anyone to private label a quality product these days. There are numerous private label manufacturers like Vitacap Labs who offer a full range of customizable service options. A unique advantage with Vitacap Labs is the option to combine products to meet their minimum order quantity of 96 bottles.

By Landon Patterson on   8/5/2010 3:52 AM

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