‘Recessionary Mindset' Evident in Personal, Household Care Purchases

November 11, 2008
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Worries consumers have about the economy will serve to strengthen private label, according to a new report from

A new market research study from, a brand of UK-based VerticalEdge Ltd., contends the adoption of a “recessionary mindset” is already changing consumer attitudes and behaviors in regard to spending and product choices in the personal and household products sector. The report, “Private Label Shopping Trends in Personal and Household Care,” examined a consumer survey from London-based Datamonitor involving consumers in 15 countries, including the United States and countries in Europe, the Asian Pacific and the BRIC markets.

In general, any worries consumers have about the economy are expected to strengthen private label spending in the sector, the study said, because store brands are seen as an important way to achieve value.

The U.S. private label personal care market was worth $7.3 billion in 2007, the study said, and is expected to account for $11.3 billion in 2012. The market is far less developed in Asia, it noted, because consumers are more name brand-conscious and actually skeptical of own label brands.

Marketing fatigue potentially could enhance the appeal and relevance of private label brands, the study said, especially because advertising is a key defense tactic of many major national brands. Across the 15 countries Datamonitor surveyed, 47 percent of consumers indicated they “strongly agreed” with the statement, “there is too much advertising today.”

Our Take: When times are tough, consumers want value without all the hype. That means it could be an ideal time to invest in the development of high-quality, value-minded personal and household care store brand items - or enhance your existing assortment.

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