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Store brands continue to gain on National brands
One lesson learned from the 2008 recession - and that isn't being quickly forgotten by a number of cash-conscious consumers - is that store brands aren't that different from their national counterparts. According to a new report from Ipsos Marketing store brands continue to gain ground on national brands, even as the economy continues to recover.
"Our data indicates that store brands still pose a formidable threat to national brands - perhaps now more than ever," said Gill Aitchison, President, Ipsos Marketing, Global Shopper & Retail Research. "While we might have believed that store brands were reaching their peak during the worst of the recession, it looks as though they are positioning themselves to succeed very well in an improving economy as well."
Ipsos researchers have conducted the study for each of the past three years on a global scale. Each year shoppers have said store brands were 'the same or better' than national brands. Store brands slipped a bit between 2009 and 2010 in the areas of convenience, meeting needs and 'being good for the family. However, between 2010 and 2011 store brands rebounded in areas of quality, innovativeness, packaging and uniqueness.
"National brands must now battle store brands on all fronts - it's not just a value game anymore. National brands must vehemently protect their image for providing higher-quality and more innovative products than store brands. With retailers focusing more on the product development and marketing of store brands, national brands are going to need to work even harder to differentiate their brands with breakthrough innovations, more standout packaging and true product superiority," said Aitchison.
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