In the ever-evolving world of retail, the dichotomy between branded products and store-owned products continues to capture consumer attention. But what truly sets them apart? Our latest conversational study with 416 consumers across the UK, France, the US and Germany delves into consumer perceptions and preferences to see if the rise of store-owned products during the cost of living crisis has continued.
Listen to your (heart) cart
When it comes to , the supermarket aisle holds the key to consumer hearts... and carts for 84% of consumers followed by e-commerce (9%) and convenience stores (5%). When asked to name which brands are top-of-mind for them, names like Mr. Clean (13%), Clorox (7%), and Heinz (6%) were mentioned.. Store-owned brands like Tesco and Great Value also hold a presence at 3% & 4% respectively. While this demonstrates awareness of both named and store-owned brands, named brands seem to be more top-of-mind for consumers.
The price is right (or is it?)
In the retail ring, it's a battle of quality and cost. While 58% of consumers see similarities in quality between named brand and store-owned products, a significant 40% perceive branded items as superior. Furthermore, 87% find branded products pricier, with only 11% seeing no difference in price and only 2% finding store-owned products costlier.
Choice drivers and barriers
As touched on above, cost and quality emerge as primary purchasing drivers for named brand or store-owned products, followed by effectiveness (16%) and ingredients/composition (13%). Surprisingly, brand attachment influences only 1% of decisions.
Quality concerns lead as the primary barrier for 57% of consumers, followed by cost/price concerns at 31%. This trend underscores the continued prioritisation of value and efficacy over brand loyalty, with only 10% of consumers being influenced by brand name.
What does this mean for brands?
For store-owned brands:
Lean into the positive price perceptions of store-owned products, compared to named brand competitors, but look to counter the negative quality perceptions to protect your share of the shelf.
For named brands:
Brand attachment and brand loyalty have become less influential in driving choices between named brands and store-owned brands since the cost of living crisis started. Relying on the brand name isn't enough. Tap into the improved quality perceptions of named brands by focusing on effectiveness and ingredients/composition, which follow quality and cost as the top choice drivers.
Brand spotlight
Aldi
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Our Creative Strategist Director, Acelya, and Senior Solutions Executive, Sophie, hosted an in-depth webinar on the evolution and future of the direct-to-consumer (DTC) channel.
Our conversation covered the significant transformations in the ecommerce and DTC landscape, the current state of DTC in the CPG sector, consumer preferences for DTC and key choice drivers, and effective success strategies for brands to thrive in this channel.
Access the recording here to catch up on the session in your own time and learn the latest on the DTC channel and how CPG brands tap into this space.