Private label competes on quality | IR News

Private label competes on quality

Posted Date: 17/08/2012

By Inside Retail

Discounted supermarkets and private labeled products are giving the big names are run from their money.

A survey, conducted by retail finance researcher, Canstar Blue, found more than half of consumers thought private label brands to be “as good as” the big brands.

Rebecca Logan, spokeswoman from Canstar Blues said private label producers have made substantial investment in overcoming the old stigma attached to home brand items by offering a diversified range to target varying tastes and price points.

“Certainly in terms of quality, that investment appears to be paying off”, Logan said.

The survey also found 42 per cent of consumers would like to see a bigger range of supermarket private label brands and 43 per cent of consumers prefer the supermarket private label brand because it offers “better value” than the big brands.

Logan said thesSupermarkets survey revealed one in three consumers prefers not to buy private label products and one in five thinks others might judge them if they do.

“It is interesting to see there still exists a bit of a stigma around buying these products," she said.

"I think it’s really just a hangover from the old price busting home brand but that’s something private label producers will need to grapple with.”

In the survey, discount supermarket chain Aldi was awarded best “customer satisfaction” taking the top spot from IGA, Coles and Woolworths.

Keywords: Aldi, private label,

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