Consumers will stay with private label purchases even after the U.S. economy improves, according to findings of a U.S. consumer survey done exclusively for PL Buyer.
Asked in June how they would complete the sentence, “when the economic recession is over, I will be buying..,” 81 percent of the 1,100 consumer surveyed say they will be purchasing the same amount of store brands as before the recession ended. Segmenting the respondents by income, the survey finds 83 percent of those making more than $50,000 in annual income say they will be buying the same amount of private label products after the recession, while 79 percent of those making less than $50,000 say they will be buying the same amount of private label goods.
Price is the major driver of private label purchase, the PL Buyer survey finds, with 93 percent of all respondents saying they buy private label because the products are less expensive than national brand products.
“The economic recession is causing an increase in private label purchasing, a trend that our survey results show is unlikely to change after economic recovery. These insights reveal an opportunity for private label brands to profit by increasing consumer awareness and reducing concerns over product quality,” Chris Urinyi, CEO of Lightspeed Research, tells PL Buyer. Lightspeed conducted the survey exclusively for PL Buyer. You can download a PDF of the complete survey on the PL Buyer home page.
