Hispanic Shoppers More Likely to Switch to Private Label Brands

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

September 14, 2010

Hispanic shoppers are also more likely than the general public to switch brands, which is driven by high acceptance of private label brands among household family members, according to a study underway by The Integer Group and M/A/R/C Research.

More Hispanic shoppers perceive less difference in product quality of private label and brand name products than general market shoppers, which is even more pronounced at higher income levels (above $75,000), according to the research. Although there is an increase in private label purchases, many Hispanic shoppers that haven't been as affected by the economy as others are sticking with familiar brands despite having to occasionally buy them less often.

"Of those Hispanic shoppers who reported no change in their shopping behavior this year, 67 percent said they stick with their brand of choice, even if another brand is cheaper," said Randy Wahl, executive vice president, M/A/R/C Research.

Hispanic shoppers also do not shift shopping behavior seasonally compared to general market shoppers, according to the research.

During the months of June, September and November, Hispanic shoppers' primary shopping goals show a significant change in rank with their priority being more on "concern for family satisfaction" and "one-stop shopping" and less on "saving money." These months also coincide with significant shopping events: summer, back-to-school, and holiday shopping.

The data suggests that while general shoppers may hunt for the best back-to-school deals, summer savings or holiday sales, Hispanic shoppers seek approval from their kids and family members over purchasing the cheapest item.

With the exception of the three major stocking-up events mentioned, saving money and convenience are usually the top shopping goals for Hispanic shoppers. They are traditionally more value-driven and less likely to use in-store tools than the general market, according to the research.

Hispanics also appear less responsive to in-store messaging than non-Hispanics with neither messaging at-shelf, nor in-store TV being cited as tools that help make a purchasing decision.

"Although many retailers and brands develop communication aimed at both the general and Hispanic markets, our research indicates that it's not necessarily reaching the Hispanic shopper," said Martin Ferro, senior planner for Velocidad, an integrated Hispanic promotional, retail and shopper marketing capability of The Integer Group. "Brands must be deep-rooted in the more meaningful insights that distinguish Hispanic communication from general market communication, especially during key shopping events."

Read These Related Articles:

• Study: Post-Recession Shoppers Stay True to Store Brands
• Research: The New Path to Purchase
• Mintel: U.S. Food Innovation Declines During the Recession
• Research: Household Products Brands Under Attack as Consumers Still Fixate on Price
• Deloitte Research: Store Brands Are Here to Stay

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases