U.S. consumers are pushing their shopping carts past many of America’s national brands and feel little regret in doing so, according to Deloitte’s recent American Pantry Study. In fact, 88% of consumers now swear by store brands, and say they have found many private-label products are just as good (or even better) than their former favorites. And 71% believe they are spending less on their grocery bills, without sacrificing much.
Still, nearly a third (31%) say brands can be a “must-have,” something they’d buy whether it was on sale or not. So what seems to make the difference between the must-haves and the rest of the brands? The must-have brands are winning the loyalty game primarily based on trust, price positioning and product positioning.
Of the 85% of consumers who have gone with a higher-priced, must-have brand in the past year, 58% did so because it was a brand they trust, a healthier option (35%), a company they trust (35%) or skipped a lower-cost alternative for one that was easy to prepare or use (29%). Additionally, the majority (68%) of the top 10% of must-have brands have a more focused price positioning and outperform those that are relatively scattered.
Source: The 2014 American Pantry Study. (May 5, 2014). Deloitte.