Private label products remain on average 29 percent lower priced than national brands but the price gap is shrinking; most likely a major contributing factor of private label share losses in the past year, says John McIndoe, senior vice president of marketing for SymphonyIRIGroup.
At a time when 23 percent of consumers are having trouble affording their groceries, 48 percent are purchasing private label solutions more frequently in order to save money, according to a SymphonyIRI Group Times & Trends report Private Label: Brand Positioning in the New World Order. In fact, nearly all consumers make private label purchases in at least one category throughout the year.
“The bulk of the opportunity lies in getting people to buy more private label-buy private label in new and/or different categories, and buy more in categories where they are already making some private label purchases,” according to the SymphonyIRI Consumer Network of the 52 weeks ended Aug. 7, 2011.
One company doing just that is CVS with Just the Basics. According to a Feb. 2011 press release recognized by SymphonyIRIGroup, “this no frills line of nearly 100 private label items across key categories, including food and beverage, household, baby, and beauty and personal care, seeks to bring shoppers everyday essentials at a low price point.”
According to SymphonyIRIGroup, “the intensity of the game continues to rise, as private and national brand marketers vie for share of consumer spending.”