Generation Y More Willingly Switches to Store Brands

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June 8, 2010

U.S. consumer are signaling a significant change in attitudes and attachment to national brands, and Generation Y is leading the charge.

Retail Forward Intelligence System, Kantar Retail, which tracks the opinions of U.S. family shoppers through a monthly survey of 4,000 consumers, indicates a strong willingness among twenty-something consumers to switch to store brands, according to a report in Just-Food. Shopping behavior trends also indicate broad stroke general acceptance of retailer brands across all demographics.

But Generation Y consumers are a fickle bunch. Although they are quick adopters of store brands, Retail Forward cautions that are also the most likely demographic group to revert to national brands once economic conditions improve.

Although price is important to consumers, product quality and value is the key driver, according to Sean Seitzinger, senior vice president, consulting and innovation at SymphonyIRI Group “When we see consumers adopting private label here in North America, it’s not because of price and value it’s because of a perception of quality parity, and it’s a perception around relationship with a retailer brand.”

Mary Brett Whitfield, director of Retail Forward, agrees: “Manufacturers need to think about retailers as competitors when it comes to brands as much as the distribution channel by which they sell their brands. It’s truly a competitive situation as well. It’s certainly more than price, and in many cases we have seen private brands lead in terms of innovations, in terms of features or functionality or flavors.”

Read These Related Articles:

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• Store Brands Tally Historic Market Share Gains
• Consumers See Little Quality Difference Between Store Brands and National Brands
• May Store Brand Dollar and Unit Sales Decline
• Store Brands Market Share Gains Level, But Likely to Hold

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