《重大消费转变：商店品牌与知名品牌》

WHITE PAPER The Great ConsumerShift: Store Brand vs.Name Brand How the pandemic is changing customerpreferences and buying behavior Table of Contents IntrouductionWhat’s in a Name?What we foundPreferences for Store Brand vs Name BrandStore Brands vs Name Brands Purchase Drivers – CPGPreferences for Store Brand by EthnicityPreferences for Store Brand by HHIManufacturer Impact on Store Brand Purchase4677891011 Where the Trend is HeadingTaking Advantage of the Consumer Shift OpportunityHow Fuel Cycle Can Help131518 Introduction Introduction Many things have changed over the pasttwo and a half years. First, the pandemicimpactedpeopleandbusinesses,especiallyinspendingbehavior.Achallenging economic situation and jobcuts meant consumers became moreconscious about where and on whatthey spend their money. One exciting trend is a pivot to buyingmore store-brand retail and consumerproduct goods (CPG). At the beginningof the year, we surveyed whether store-brandproductsalesareoutpacingname-brandproductsalesacrossvarious retail/CPG categories. This white paper will dive deeper into thistrend, break down our original research,andascertainwhichstore-brandorname-brandproductcategoriesholdthe most growth potential over the nexttwo years. 1. What’s in a Name? What’s in a name? Name-brand products have historically dominated sales, but store-brand (aka private label)products have gained popularity with consumers recently. The budget-minded consumerused to be the target audience for store-brand products, but that segment has sinceexpanded beyond that population. In an article1, McKinsey points out that many name-brand consumer goods sold out fromstores during the early days of the COVID-19 crisis due to panic buying. This phenomenonpushed consumers to switch, and because store-brand goods are typically highly availableand less expensive, these became a more appealing choice during the pandemic. It also presented a unique opportunity for retailers to ride this wave and invest more intotheir marketing strategies for privately labeled CPG brands to convert the short-term switchto long-term brand loyalty. Making bold moves is even more urgent for retailers that haven’tinvested meaningfully in private-brand capabilities. What we found We wanted to dig deeper, so we sent an online survey to a general population sample andfielded it from January 28 through February 11, 2022. 1,524 respondents completed the study,and here’s what we discovered: 1.Name-brand products still account for most sales versus store brands, except forhealthcare products and home goods, where preference is nearly even.2.Store-brand products offer consumers a more economical option than their name-brand counterparts without sacrificing quality.•Price and value are common themes and of particular concern given the currentstate of economic inflation.•In some cases, the store brands offer better quality than the name brand options. Preferences for Store Brand vs Name Brand Alcoholic beverages, electronics and pet products own the most name brand loyalty, whilepreference for healthcare products and home goods are nearly split between store brandand name brand. What we found The confluence of store brand quality continuing to improve, coupled with the rising costof goods, will force consumers to seriously consider purchasing store-brand products overname brands if they are not already doing so. Among store brands: home goods, healthcare, cleaning, and food products will be thecategory leaders over the next year. In 2024,home goods and apparel should remain store brand leaders. Store Brands vs Name Brands Purchase Drivers – CPG Store brand CPG products provide better value than name brands at similar levels of qualityand have earned a reputation as trusted brands more than retail or food categories. What we found Particular category preferences for a store or name brand vary by ethnicity and householdincome. Preference for Store Brand by Ethnicity Asian shoppers lead store brand preferences for electronics, pet products, toys and packagedfoods while Hispanic customers prefer store brand cleaning supplies above other ethnicities. What we found Preference for Store Brand by HHI Lower income earners favor store brand toys, personal care products and cleaning supplies;both low income earners prefer store brand healthcare products and electronics. What we found Nearly half of respondents would be more likely to purchase the store brand version ofthe same name-brand product if the manufacturing source is the same. Having the samemanufacturer attests to product quality and enables customers to realize the more excellentvalue and affordability. Manufacturer Impact on Store Brand Purchase Lower income earners favor store brand toys, personal care products and cleaning supplies;both low income earners prefer store brand healthcare products and electronics. 2. Where This Trend isHeading Where This Trend is Heading The survey also revealed t