Retailer Daily posted some telling statistics today that further enforce what we’ve all probably felt in some way: U.S. consumers have adjusted their purchasing over the past two economically down-turned years. Citing recent comScore ARS research, their analysis proves that more shoppers are leaving their preferred brands on the shelves in favor of ones that fit a tightened budget. This trading down trend can be seen in basic categories like health & beauty aids, OTC medications, apparel, food, household products and housewares – some brands falling over 15 percentage points in loyalty since March of 2008.
While this news is unfortunate for top brands, the less expensive guys are feeling a positive shift in share. In a related article on Private Labels, RD breaks down more numbers, except these ones are rising, especially in commodities. Those numbers come from a recent Neilsen Company, who also gave some helpful tips for those for retailers seeking to boost their private label brand sales:
1. Close the price gap.
2. Enhance product quality.
3. Advertise aggressively.
4. Promote consistently.
5. Shelve advantageously.
6. Reward heavy buyers.
7. Stimulate new user trial.
8. Cross-promote complementary items.
9. Retain high penetration, high frequency and strong niche brands.
For more, check out the whole report.
