Brand names are losing ground to private-label goods, regardless of rising incomes

  • According to big consumer goods companies, the Great Recession drove people from branded products to cheaper store- brand options- “private label” products.
  • Researchers have examined household income and wealth fluctuations in recent years and tracked how fluctuations affected shopping habits, controlling for changes in products’ pricing.
  • In a trend that predates Great Recession, private-label goods are rising as a portion of total consumer goods expenditure, by half a percent a year.
  • Researchers tested whether the introduction of new private-label products or a move toward higher quality private-label items might have been the root cause of this, but find no evidence either.
  • Consumer goods companies can’t just wait for the recession to go and wait for rising income to increase share.
Source: http://bit.ly/2o6ZLbt

 

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Sakshi Natha

[/third_paragraph][third_paragraph]  [/third_paragraph][third_paragraph]                         Posted by:

Yash Rathod

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