Is the tide of grocery private brands changing?

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According to a new study by a research firm, Dunnhumby, private brands are looking for new standards, but they still remain the main drivers of groceries.

Consumers who have surveyed in April say that personal brand quality is “very or extreme”. Dunnhumby’s consumer trend trackerIt was released at the end of May. Meanwhile, the importance of price competitiveness of consumers and the “love” of personal brands are all dropped and each is about 1 percentage point.

A smaller number of shoppers said that 43%were in April, which was 43%in April, when 43%in April.

Erich Kahner, director of the American Dunnhumby’s strategy and insights, said that the importance of personal brands and the frequency of people purchased through the name brand have recently been relaxed.

Kahner’s importance of personal brands began to increase in 2022 for consumers, and in 2023 it scored high. Since then, KAHNER said that grocery inflation has been higher than before it surged.

Kahner said that the main driving force of this change is to lower the price sensitivity of consumers.

Kahner said, “We have read a lot of headlines for customer feelings, but we have read a lot about consumer sentiment, but we haven’t started changing a lot in the last few months,” Kahner said..

He continued to say, “I think there are a lot of fear and anxiety in the market, but at least in the shelves, action has begun to follow. Because we have not seen much worse to customers because of the higher inflation or supply chain disorders.”

Change in the economic environment

After four years of confusion with Covid-19, record inflation and interest rates in 2022, the monthly budget has been steadily maintained for consumers since early 2024.

“Last year was economically and economically stable. … The price sensitivity is still higher than that of all chaos, but last year, it returned to a natural reversal, but not necessarily, it returned to a new top.”

Dunnhumbyby says the need for food shopping makes consumers further contain food from consumers’ concerns, Dunnhumbyby said.

Kahner said, “When delivering or implementing or implementing the food store and basic daily demands, the reality of the (consumer) salary will meet the monthly budget, but will lead more than the fear of the future.

How to use the power of a grocery store to use the power of personal brands

Consumers investigated by Dunnhumby say that personal brands are now less important to them, but the STORE brand is still playing a bigger role in groceries than a few years ago, Kahner said. This is demonstrated by Dunnhumby’s discovery that the personal brand is growing faster than the name brand.

Kahner said, “(R), which is the best position in the long run, always tends to be a retailer with a powerful personal brand.“ This was true before 2020, maintained the fact as a whole, and even if the customer became less important, it pointed out that the personal brand provides a better price at a better price. ”

He added that groceries that take long -term approaches to personal brand portfolios are better adapting to growth. KAHNER said that the retailer centered on individual brands (an average of more than 40% of the sales volume) is much better for long -term sales growth compared to other retailers, which strengthens emotional relationships with shoppers and has a high market share of monthly food budgets.

Dunnhumby did not find a difference in the importance of personal brands between income cohorts, but the data company found that the children living at home are more important to the individual brand than those who have no children.

Kahner said Dunnhumbyby is increasing the perception of consumers that private brands are high quality.

Kahner said, “Compared to two demands for personal brands, ‘private brands offer high quality’ and ‘personal brands save money’, more important demands for people are to get high quality from personal brands.

Retailers use this desire for growth for the same quality as the initial Walmart. Better GOODS Line And Target’s Good & Counting brand said.

Kahner said, “We see other supermarkets or local retailers investing in private brands in premium classes.”

The importance of personal brands throughout Dunnhumby Tracks’ income cohort is “very consistent,” he said. This pointed out that the store brand is not just a lottery for those with low income.

KAHNER brings shortcuts with brand houses, such as an unusual positioning and too many brands in the overall category. He recommends that a retailer will provide a clear positioning for each personal line.

He may be difficult and takes a lot of time, but using a refreshing portfolio by removing or combining the brand can make messaging sharp, he said.

He has a large brand that serves as a national brand, and it is recommended that the premium brands that focus on the quality of some categories and the unique varieties of the category will be launched. After launching these three types of brands, Kahner pointed out that groceries can be adventure in specific categories such as pet feed lines or organic lines.

“Personal brands are a kind of lever of groceries when you think about it. You can save money and provide high quality (item), so it remains a key point that can be differentiated if the retailer wants to improve the market share over time.”