otc drugs

Switching to Private Label Products is Accelerating and Irreversible

See the charts below from comScore, Nielsen and Symphony/IRI.  The percent buying branded products of past has dropped to 43%.  The percentage switching (2nd graph) is most in OTC drugs and apparel. And even if the economy improves, consumers would continue to buy private label. Whole Foods has been offering their 365 “house brand” for many years and Trader Joe’s also has great private label products that are often equal to or arguably higher quality than branded alternatives.

Brand Loyalty is Declining

 

 

 

 

 

 

 

willingness to switch to generic or private label versus branded product

 

 

 

 

consumers will continue buying private label even when economy improves

 

 

 

Related Article:  Spend Polarization – consumers save money in the down economy by buying more from Costco, Sam’s Wholesale, and BJ’s but when they splurge, they buy ultra-high-end.

 

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Monday, November 28th, 2011 Branding No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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