NEW YORK -- National brands
are losing their hold over grocery shoppers, says a consumer survey, which finds that 88% of shoppers think most store brands allow them to save money without sacrificing quality.
What is the right mix of national brands
and private brands for most retailers?
* A new pricing study that compared a summer shopping basket of store brands versus national brands
shows that consumers can save more than 35% off their grocery bill, on average, by opting for a retailer's brands.
In the race for quality perceptions, store brands run close to even with national brands
in some categories and lag far behind in others.
According to the Blueprint, "Consumers and retailers alike consider private label to be a 'brand' like any other in the marketplace." Most retailers believe private label quality is equal to or greater than that of national brands
, with only 4% saying it was not comparable to national brands
are still America's favorites when it comes to home textiles.
Not only are African Americans loyal to national brands
, they are also devoted to specific national brands
In fact, many of the chain's private brand lines are significantly larger than national brands
. "We get the benefit of leveraging our brands across multiple categories, which is incredibly powerful," Stiller says.
In the liquids category, retailer margins for the leading national brands
hovered around 31% to 34% with the exceptions of Tylenol Cold (40.2%) and Mucinex (41.4%).
Much of this growth can be attributed to the sagging economy, which prompts shoppers to opt for typically lower-priced private label instead of national brands
. Another important factor is the improved quality of store brands.
The consumer survey reveals that while the adoption of private labels began with its value proposition, consumers perceive these store brands are offering quality at par with other national brands
Store brands and national brands
have come closer together as many store brands have been upgraded many national brands
stood still or were cheapened.