retail

Private Label: Drawing The Line At Kids, Pets

shoppingWhile it's been very well documented that the recession has spurred sales of private label goods, it seems that price and trust in quality may only go so far.

Results of a recent survey conducted by ICOM, a division of Epsilon Targeting, indicate that many consumers are drawing the line when it comes to their children and pets.

Well over half (59%) of respondents to the online survey, conducted in May, indicated that they've switched to store brands to some degree for food and household products during the past six months. Nearly half said the same about their own health products (48%) and personal care products (also 48%).

In contrast, just 12% reported some shift toward private label within child care products, and 23% within pet care products.

Within the category of over-the-counter medicinal products, the percentages reporting that they've switched from national to store brands varied considerably depending on the type of malady: 42% for general pain relievers, 32% for cold/cough medicines, 31% for allergy remedies, and 22% for heartburn medicines.

advertisement

advertisement

The survey was sent to 70,000 consumers from a nationwide survey opt-in panel (not a random sample), and drew responses from 1,530, or 2.2%.

While consumers weren't probed on the reasons that they deem private label acceptable in some categories and not others, ICOM marketing director Warren Storey said that the results point to the level of "perceived risk" as being a key driver of such decisions.

In a separate ICOM online survey conducted in the same fashion in April (70,000 sent, 1,827 responses, 2.6% response), consumers showed a strong preference for customer loyalty rewards supporting basic household needs. Seventy percent expressed interest in rewards at grocery stores, and 61% in rewards toward gas purchases. The next-closest categories were retail stores (41%), household products (40%) and travel (29%).

Storey's takeaway: National brands that understand the psychology behind private label purchasing decisions -- who's switching and why -- and tailor their promotions and incentives accordingly will be more effective at winning back consumers than those that use "scatter-shot, one-size-fits-all offers."

1 comment about "Private Label: Drawing The Line At Kids, Pets ".
Check to receive email when comments are posted.
  1. Claudia Torelli from Cary Capital Consulting, July 13, 2009 at 11:02 a.m.

    However, Nielsen's Scantrack reports Store-Brand Baby Food, as the category with the largest growth (+45%) in unit sales in the 52 weeks ending 5/16/09 (FDM with WalMart). Either ICOM's survey results are not yet reflecting this growth, or consumers are not being 100% honest on the categories they have switched to store brands.

Next story loading loading..