Shoppers divided on private labels

 

clothesThere is a significant distinction between attitudes of department store shoppers and discount store shoppers towards home brand products, according to new research by Roy Morgan.

Almost four in every 10 Australians aged 14 and over agree that they buy more stores’ own products than those of well known brands.

This is marginally higher among shoppers at discount stores such as Target (38 per cent), Big W (40 per cent) and Kmart (43 per cent).

Meanwhile, David Jones customers are less likely to agree (22 per cent), as are Myer and Harris Scarfe customers (27 per cent and 26 per cent respectively).

 

Percentage of Australians who agree, “I buy more stores’ own products than well known brands”: 

shoppers-home-brand

Source: Roy Morgan Single Source (Australia), April 2009-March 2010, n=18,929; April 2013-March 2014, n=17,773. David Jones shoppers: April 2009-March 2010, n=1,607, April 2013-March 2014 n=1,134. Myer shoppers: April 2009-March 2010, n=2,922; April 2013-March 2014, n=2,377. Harris Scarfe shoppers: April 2009-March 2010, n=1,065; April 2013-March 2014, n=896. Big W shoppers: April 2009-March 2010, n=8,449; April 2013-March 2014, n=7,001. Kmart shoppers: April 2009-March 2010, n=7,024; April 2013-March 2014, n=6,337. Target shoppers: April 2009-March 2010, n=6,908; April 2013-March 2014, n=5,622     

Warren Reid, group account director, consumer products, Roy Morgan Research, says different kinds of customers differ dramatically in their attitudes to home brands.

“Shoppers at Kmart are more comfortable and accustomed to buying store branded labels, as are Big W and Target customers. The attitude of Harris Scarfe shoppers to stores’ own products has become similar to that of Myer customers over the last four years,” Reid said.

“Long gone are the days when home brand products were instantly recognisable thanks to their black and gold packaging or the store’s name emblazoned on the label. Nowadays, unless you’re looking really carefully, it can be difficult to pick which products are stores’ own. But then again, what exactly constitutes a home brand these days?

“Department store, David Jones, plans to build on its repertoire of private label products by adding four new lines to their fashion menu, with the goal of improving sales in this product category. If these new products are of the same quality and style you’d expect from such a high end retailer, then today’s private label brands could well become ‘exclusive’ brands in their own right.

“The key to success with these new private label brands will be how much effort and resources David Jones puts into branding activity.”

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