Consumers in the Apac region – including Australia – are more inclined to buy private label products, signalling growing trust and loyalty, a study by consumer intelligence company NielsenIQ shows.
According to the report, more than half (54 per cent) of Apac consumers say they are more likely to buy private label products than ever before.
Thailand saw the biggest trend with 64 per cent of respondents sharing this preference, followed by India (61 per cent), China (56 per cent), and Indonesia (55 per cent).
Meanwhile, branded products continue to hold significant strength in the minds of consumers.
Brand choice among consumers in the region is primarily driven by functional reasons (85 per cent).
Expectations differ between private label and branded products, with consumers seeking affordability, availability, and community support from the former while prioritising superior quality, wide assortment, omnichannel availability, and notoriety from the latter.
“Asia Pacific’s retail landscape is evolving, and we see both private labels and branded products carving unique but complementary spaces on the shelf,” commented Terence Colle, MD of strategic analytics & insights for Asia Pacific at NielsenIQ.
“The brands that succeed will be those that recognise the strengths each brings to consumers – whether it’s value and local relevance or quality and prestige – and embrace opportunities for growth together.”
The study also suggests that private labels and branded products embrace collaborative growth instead of competing head-to-head. Interest in private labels can boost overall store traffic and benefit all brands, while growth in private labels can help expand categories and open new opportunities for brands, it explains.
NielsenIQ’s study gathered responses from over 17,000 consumers across 25 markets, including Australia, China, India, Indonesia, Singapore, South Korea, and Thailand.
