Making Your Brands Irreplaceable

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Claimed private label purchasing is rising – and the majority of consumers are open to purchasing private label (PL) across different age groups and various income levels. This high level of openness to private labels poses an increasing challenge to established CPG brands, especially in food, beverage and household care categories etc.

The success of private label products can be contributed to two key factors: a narrowed perception gap regarding product quality and a more attractive value proposition amidst the current high inflation economic environment. As a result, more than half (54%) report purchasing more private label products than last year.

However, name brands still hold a strong position to compete with private labels as consumer loyalty in name brands still plays a significant role in their purchase decisions. Many also acknowledge that it is not easy to find a store brand equivalent to their preferred name brand products.

Innovation is the key – innovation becomes essential as name brands’ quality advantage diminishes. Name brands can continue strengthening its advantages by focusing on innovating via offering new and unique products that more effectively address consumers’ needs to distinguish themselves from private labels and justify premium pricing.