Change in consumer mindset driving private-label growth
Consumers attitudes towards store branded products have shifted dramatically in recent years with consumers no longer thinking of these as inferior quality products.
Research from GlobalData revealed that the change in consumer mindsets in Asia-Pacific is down to the improving quality and innovation across private label products.
Manufacturers are now creating exclusive product ranges that tap into consumer preferences for health, transparency and sustainability.
GlobalData’s report, ‘TrendSights Analysis 2019: Private Label Evolution, has found that private label food and non-alcoholic drinks are growing with retail-owned brands responding well to consumer demands.
The household care and personal care sector is also growing as brands focus on value-led, multipurpose products with ethical and sustainability credentials.
“Consumer approval of private labels is high among shoppers across both developed and emerging markets. In Asia-Pacific, shoppers’ confidence in private label products appears to be growing, with consumers seeing private labels as good alternatives to famous name brands,” Shagun Sachdeva, consumer insights analyst at GlobalData, said.
“With experience-driven shoppers and health-conscious consumers being open to trying out new products, retailers are adopting increasingly refined approaches to their own-brand offerings through proactive trend tracking and product innovation to create new product categories.”
Shoppers are now less brand-conscious and want more quality and value in what they purchase. GlobalData said this leads to blurred lines between national and private label brands and paves the way for co-innovation between retailers and suppliers to create premium-quality and lower-priced offerings.
“Firms looking to enter the private label space need to understand how to remain relevant to consumers by using insightful innovation, capitalizing on current trends. Firms could try to lure consumers with high-quality ingredients and customization of products. Furthermore, they should innovate wisely to avoid over-expansion, be open to diverse channel reach and drive brand status by using unique marketing strategies,” added Sachdeva.