Home brands
A growing love affair with Private Label
It hasn’t been love at first sight for consumers and Private Labels. Rather it’s been a slow courtship with consumers showing cautious interest as they try and work out just who and what these new entrants to the marketplace are about and how they might fit into the shopping experience. But with such overwhelming presence they simply could not ignore them and a relationship is taking shape, but which is yet to blossom.
Home Brands Hitting the Mark
While Australian consumers lament the removal of some
favourite brands from supermarket shelves and are displeased with the major
grocery chains for doing so, they are also rapidly adopting the home brand
offerings which have taken their place.
It has taken some time for home brands to gain traction, but
slowly and steadily, by experimenting category by category, Australian
consumers are making the switch. This has not been a revolution of changing
buying behaviour, but a gradual evolution, which will set the pattern for the
future. Once they have decided a cheaper option meets their buying criteria
it’s is a big ask getting them to go back and pay the higher price again.
There are several reasons for this: