New competitor monitoring research from Accenture has revealed that US consumers are continuing to buy private-label products. An Accenture survey has found that 64 per cent of those questioned said their grocery trolley was at least half full of own-label products with nine per cent saying they have been buying the products for a number of years.
The competitor monitoring research also showed how 66 per cent bought private label because they had a lower price than the big brands. Of the 500 consumers surveyed, 87 per cent said they would buy more of the leading brands if they were priced as competitively as the comparable private-label product. However, 51 per cent said they would only be persuaded to return to buying the leading brands if their prices were permanently reduced. With so many consumers now carrying out competitor price monitoring online, it is not surprising that only a price drop would make them switch back to the A-brands.
Looking at the area of quality, 50 per cent of those surveyed said they buy own-brand products because they believe that the quality to be just as good as the leading brands. Also, 48 per cent said they believe retailers now offer a greater variety of own-label products than ever before.
FMCG companies must respond to the “threat of increasing competition from store brands” as market position and profitability are at stake,” said Accenture. The consultancy company believes that consumer goods companies must develop a “balanced strategy” of collaboration with retailers in some areas and competition in others.
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Pricing intelligence company Profitero provides retailers with actionable price intelligence data, monitoring over 50 million products across 4,000 eCommerce retailers every day, observing pricing, promotions and stock availability. We work with the world’s leading retailers, enabling them to acquire new customers and grow profit margins by monitoring and responding to changes in competitor pricing and promotional activity as they happen. For more information on Profitero price intelligence and competitor monitoring, visit www.profitero.com or email firstname.lastname@example.org