Food - Customers appreciate the quality and availability of private labels
Consumers in Germany frequently turn to retailers' own brands in supermarkets not only because of rising prices but also because these products are often more readily available than those of large manufacturing brands. This is according to a survey conducted by the Cologne Institute for Retail Research IFH, which questioned over 500 consumers representative of their shopping behavior in June of this year.
Approximately 80% of consumers reported experiencing in the past few years that desired products were sometimes unavailable. This was particularly the case with fruits and vegetables, dairy products, cereal products, and hygiene articles. Most customers then purchased alternative products in the same store or switched to a different one.
Brand shortages boost sales for private labels
Private labels have gained attention and are more frequently tried due to supply chain issues faced by competitors. The quality is positively evaluated. A clear majority of consumers believe that private labels are just as good as branded products (74%) and see better value for money (72%). Six out of ten have recently bought private labels frequently and intentionally, not only because of better availability. "Many people now stay with private labels. Good experiences lead to repeat purchases," said IFH managing director Boris Hedde. Private labels are less susceptible to supply chain disruptions.
The survey reveals the sensitivity of consumers regarding availability. If this is not guaranteed and desired items are not regularly available, customers may even switch brands. Nearly every third person shops less frequently or not at all from certain retailers due to poor experiences. The same number abstain from specific brands. Almost 60% prefer to shop in stores where availability is good. When shopping, consumers now focus on the fact that articles may be temporarily unavailable. 80% try to keep reserves of their favorite products at home.
- The rising prices and availability issues of large manufacturing brands in the retail trade have led many consumers in Germany to turn more frequently to supermarkets' own brand products.
- In the past few years, approximately 80% of consumers in Germany have reported facing difficulty in finding their desired products, particularly in the categories of fruits and vegetables, dairy products, cereal products, and hygiene articles.
- The Cologne Institute for Retail Research IFH's survey discovered that a clear majority of consumers believe that private labels, including those in the retail trade, offer the same quality as branded products and provide better value for money.
- The survey results also showed that 6 out of 10 consumers have intentionally purchased private label products more frequently due to their better availability, not just because of their perceived value.
- In response to the increasing sensitivity of consumers towards product availability in Germany, retailers should focus on ensuring the regular availability of their products in supermarkets to retain customers and maintain their loyalty to own brand products.
