Executive Briefings

Will Private Label Continue to Beat Brand Names?

In just-completed shopper research on private-label usage conducted by Perception Research Services (PRS), fewer shoppers reported purchasing private-label products on a regular basis, compared to the last wave of research conducted in July 2010 (84 percent vs. 94 percent), but those buying private-label goods are buying more of it (average number purchased up 25 percent from 4.8 to 6).

Paper products continues to be the leading private-label category purchased, with increases evidenced across almost all categories, and the largest seen for cereal (+20 percent), cleaning products (+19 percent), cookies and frozen meals (both +14 percent).

However, the data suggests that while the penetration of private label usage may have peaked, a significant portion of "triers" have been converted to "believers" who now choose the private label alternative for more types of products.

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In just-completed shopper research on private-label usage conducted by Perception Research Services (PRS), fewer shoppers reported purchasing private-label products on a regular basis, compared to the last wave of research conducted in July 2010 (84 percent vs. 94 percent), but those buying private-label goods are buying more of it (average number purchased up 25 percent from 4.8 to 6).

Paper products continues to be the leading private-label category purchased, with increases evidenced across almost all categories, and the largest seen for cereal (+20 percent), cleaning products (+19 percent), cookies and frozen meals (both +14 percent).

However, the data suggests that while the penetration of private label usage may have peaked, a significant portion of "triers" have been converted to "believers" who now choose the private label alternative for more types of products.

Read Full Article