Consumers See Little Quality Difference Between Store Brands and National Brands

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April 13, 2010

New research finds that 80 percent of global consumers feel store brands are the same as, or better than, national brands at providing a variety of benefits, according to research conducted by Ipsos Marketing, Consumer Goods, based in New York, N.Y.

While store brands have built their foundation on distinguishing themselves as a good value in terms of low cost, the study suggests that consumers believe store brands provide much more than that.

At least 80 percent of consumers indicated that store brands are the same as or better than national brands and that they meet their needs, offer convenience, are good for their families and environmentally friendly and exude trust.

“In essence, the brand experience associated with store brands is matching the brand experience associated with national brands –– and that is very alarming for national consumer packaged goods marketers,” said Gill Aitchison, president of Ipsos Marketing, Global Shopper & Retail Research.

The study further indicates that consumers are confident that store brands perform just as well as national brands with 81 percent saying store brands offer food products that taste as good and home products work as well as national brands.

“The notion that store brands offer a sub-optimal product experience –– the trade-off for lower price –– seems to be fading in consumers’ minds, Ipsos said in a statement.

“Store brands are flourishing as a result of product quality improvements in conjunction with the effects of the poor economy on consumers, which has elevated purchasing of store brands,” Aitchison added.” The level of trust in store brands across many different product areas at a time of distrust in other sectors like banking may mean that shoppers may be less likely to return to more expensive brands in the future unless the benefits really out-weigh the cost–and these will tend to be emotional benefits rather than functional benefits.”

In what areas did national brands do well? “National brands’ greatest strengths versus store brands are packaging, innovation, uniqueness and quality,” Aitchison said. “These are important facets of the brand experience, and ones that manufacturers should consider in their brand strategy.”

More than 21,600 consumers from 23 countries were interviewed for this study between Nov. 4, 2009 and January13, 2010.

Read These Related Articles:

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• Ninety-one Percent of Shoppers Will Keep Buying Store Brands After the Recession Ends
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