Monday 15 January 2007

Store Brands Evolve

Gail Zielinski of AC Nielsen has been mining the database to find out who is driving private label sales growth, discovering that upscale families are increasingly switching from brands. Consumers now trust private label quality and will buy even if the cost savings are not so great.

Private label nonwovens are a billion dollar business...

...but sales performance is worse than that of branded products

Private label nonwovens sell at an average discount of 21% over branded products...

...but far fewer households buy them c.f equivalent brands...
...and they buy them less often.

Asked if PL will continue to grow as the economy improves, Ms Zielinski thought it would because PL now sells for more reasons than just price.
Who does PL best? Aldi, Trader Joes, Costco.
Does the Nielsen data include Walmart? No. In diapers, PL needs to catch up with the brands to reverse the loss of share.

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