Accenture Plc : Accenture Study Finds Store Brands Thriving as U.S. Shoppers Prove Reluctant to Return to Old Buying Habits
07/10/2012| 08:05am US/Eastern
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A new study from Accenture (NYSE: ACN) finds that the threat of
store-brands - also known as private-label or generic products - to
brand-name products is not going away. Two thirds (64 percent) of
shoppers surveyed by Accenture admitted that their grocery carts were at
least half full of store-brand products, and 39 percent said they have
increased their purchase of store-brands in recent years as a result of
the tough economic times.
The Accenture study of 500 U.S. consumers found that price remains the
key factor in the majority of store-brand purchases. Two thirds (66
percent) of shoppers said they buy store-brands because they are
cheaper. Also, while 87 percent of shoppers said they would buy more
brand-name products if they were offered at the same price as the
comparable store-brand, more than half (51 percent) said that it would
take a permanent price reduction of the brand-name product - to the same
price as the store-brand - to persuade them to return to purchasing the
brand-name product.
The Accenture study concludes that the growing perception of trust,
quality and preference for private-label products should be of most
concern to consumer goods companies that are competing with stores for
the same shelf space. Half (50 percent) of consumers surveyed buy
store-brand products because they perceive the quality to be just as
good as the brand-name equivalent, 42 percent buy a private-label
product because they "trust" that particular store's brand, and 28
percent simply prefer the store-brand product to the brand-name product.
In fact, only 9 percent claimed not to buy store-brands because they
felt that the quality or taste was inferior to the brand-name product.
"Consumer goods companies must respond to the threat of increasing
competition from store-brands as market position and profitability are
at stake," said Bob Berkey, from Accenture's Consumer Goods & Services
practice. "Extreme competition between retailers and consumer goods
companies can result in inefficiencies and waste for manufacturers and
retailers, and undifferentiated products for the consumer. Consumer
goods companies must develop a balanced strategy of collaboration with
retailers in some areas and competition in others. This new dynamic -
where competitors become partners - will require a considered focus from
manufacturers."
The study found that consumers believe that stores have improved the
variety and appeal of their range of store brands. Almost half (48
percent) of shoppers believe that stores now offer a greater number and
variety of store-brand products, and more than one third (36 percent)
see store-brand products as simply another brand on the shelf.
As further evidence that better selection, trust and preference are
driving sales of store-brands alongside price, 77 percent of shoppers
said they would not decrease the amount of store-brand products they buy
even if their disposable income were to return to the same level as it
was before the economic downturn.
"Undoubtedly, uncertain economic times are a major factor in the growth
of private label, but it is the increased sophistication of stores' own
brands that has helped them retain customers," Berkey said. "Consumer
goods companies must create a clearly defined private-label strategy
that understands the unique attributes that drive preference and loyalty
in their consumer, engages with them across multiple channels and
creates an excellent customer experience."
Methodology
Accenture conducted an online survey using a representative sample of
500 U.S. consumers in May and June 2012.
About Accenture
Accenture is a global management consulting, technology services and
outsourcing company, with more than 249,000 people serving clients in
more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions,
and extensive research on the world's most successful companies,
Accenture collaborates with clients to help them become high-performance
businesses and governments. The company generated net revenues of
US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page
is www.accenture.com.
Accenture
Matt Samuel, + 44 207 844 2055
+ 44 7717 866766
(mobile)
matt.samuel@accenture.com
© Business Wire 2012
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