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Study: Shoppers opt for private label over brands across specific categories

Brands offering frequent innovation win out

DENVER — Although 77% of general shoppers compare store brands to brand names, 90% of women compare both regularly, according to a shopper behavior study conducted by The Integer Group and M/A/R/C Research that was published Thursday in The Checkout.  

"Certain categories appear to be immune to the store-brand swap," stated Craig Elston, SVP Integer. "Categories that offer shoppers frequent innovations such as performance or variety, and categories where personal stakes are higher, are more difficult areas for private-label products to compete."  

Of note, certain demographics (76% of African-American shoppers compared to 69% of shoppers in general) say laundry detergent is a category in which brand name is very important to them. Health and beauty is also a category where shoppers prefer a brand name to a private label, with 74% of Hispanic shoppers and 65% of general shoppers stating this.

When it comes to quality perception, brand names have maintained a slight advantage over private labels. The prevailing factor is trust, with 51% of shoppers indicating that they continue to buy brand-name products over store-brand alternatives because they trust the brand.

Categories with little innovation or new product introductions tend to be easier for private-label brands to compete. For example, 68% of shoppers prefer private label brands in the over-the-counter medicine category. 

The Checkout is available for download at Integer's blog www.shopperculture.com.

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