Store-brands still prove to be highly popular with U.S. consumers when compared with brand-name products.
A study released by Accenture finds that two-thirds of U.S. shoppers surveyed admitted that their grocery carts were half full of store-brand products.
Some admitted to Accenture that they even increased their purchase of store-brand products in recent years as a result of an unpredictable economic climate. The study, which was completed by 500 U.S. consumers, reported that price remains the main factor in store-brand purchases. Consumers like store-brands because they’re “cheaper.”
Accenture reported that there is growing perception of trust, quality and preference for private-label products since about half the consumers surveyed said they buy store-brand products since they are of the same quality as brand-name products.
Bob Berkey, Accenture’s consumer goods & services spokesman, said consumer goods companies should respond to the competition from store-brands.
“Extreme competition between retailers and consumer goods companies can result in inefficiencies and waste for manufacturers and retailers, and undifferentiated products for the consumer,” Berkey said. “Consumer goods companies must develop a balanced strategy of collaboration with retailers in some areas and competition in others.”
This survey was completed during May through June, 2012. Accenture is a global management consulting, technology services and outsourcing company with clients in more than 120 countries.