The economic downtown provides some good opportunities for private label retailers, both with the present and next generation of shoppers, according a new report, "The Why? Behind the Buy," released Nov. 30 by Acosta Sales & Marketing.
The economic downtown provides some good opportunities for private label retailers, both with the present and next generation of shoppers, according a report, "The Why? Behind the Buy," released Nov. 30 by Acosta Sales & Marketing.
In its semi-annual survey of 1,000 randomly selected shoppers from all groups throughout the United States
, Acosta found that nearly 40 percent are buying private label to save money on groceries. In the under-30 group, tomorrow’s biggest shoppers, private label goods are becoming “cool” to buy when those shoppers go looking for the best value.
That means private label retailers should focus their marketing efforts on creating brand awareness and building shopping habits among today’s under-30 shoppers, says Acosta, a sales and marketing firm based in Jacksonville, Fla.
Younger shoppers are not making lists as much as their older counterparts, according to the report. Rather, they are looking for the best value for the meal they have decided to cook that night. As well as pricing, the report suggests considering in-store opportunities to deliver your branding message and engage with the shopper.
"Younger shoppers are not nearly as brand loyal as their older counterparts, with more than 50 percent of those age 18-44 saying that store brands are a better value," says Parker Hurlburt, vice president of Research at Acosta.
In general, shoppers in the study told Acosta they still are treading water financially. Since they need to eat, shoppers have adopted new habits to save money. As well as buying more private label goods, they are using more coupons and consolidating trips to the store. And trends, according to the report, show these changes are more permanent than previously expected. Shoppers are not expected to simply revert back to less conservative habit,s even if their financial situations improve, the report says.
“Consistency in the quality of store brands from store to store is improving, but whether the shopper will stay with private label once their financial situation improves or revert to a name brand depends on the kind of product," Hurlburt says.