The New Retail Trend – Premium Store Brands
Off brand products are bigger deal than you may think. According to Nielsen, the sale of store brand products is continuing to grow. People always assume that off brands are only about price. This is not true. According to HBR people buy off brand products because “they felt a great deal of affection for that specific retailer overall” and “a deeper level of pride about being a private label consumer”. We can get behind the new retail trend of premium store brands here at Off Brand Guy. We have nothing but pride for saving money with off brand products.
Related: Inflation Has Grocery Store Food Prices Rising
Name Brand Vs. Generic
Digging deeper on premium store brands. According to HBR there are two types of off brand shoppers. The purpose driven shopper and the treasure hunter. The purpose driven shopper is after “good quality at a great price”. The treasure hunter is all about trying “new brands, including private label”.
What Are Generic Foods?
A generic or private label product is one sold under a retailer’s name rather than a brand name. This could be Walmart (Great Value), Costco (Kirkland), Safeway (Signature Select), QFC (Kroger), etc. A generic product is typically manufactured by a 3rd party. Also, it lacks the marketing and fancy packaging efforts that would be considered common with a name brand. Private label products do not have logos or packaging that is familiar to consumers. Therefore, the products are available at a lower price.
Is Brand Name Food Better Than Generic?
As covered by MarketingProfs, “a recent survey conducted for the Private Label Manufacturers Association found that 41% of shoppers now identify themselves as frequent buyers of store brands”. Clearly, Off Brand Guy was before its time. The tide is turning for the perception of off brand products. Store brand stuff use to be known as cheap, copycat versions of the name brand. Not anymore. Premium store brands are changing everything.
What Is A Premium Store Brand?
A premium store brand item is a high quality generic product that is available at a budget friendly price. According to the Hartman Group retailers are after a “delicate balancing act, projecting upscale charm and a healthier lifestyle, while keeping the budget friendly prices”.
According to MarketingProfs the “new positioning of premium stores brands is revolutionizing the retail landscape”. This has emerged because retailers want to differentiate themselves. Also, they want to generate higher profit margins. Especially in an era of high inflation. The gold mine is to position a product that is superior to the name brand at a lower price.
This offers the best of both words from a consumer’s perspective. I don’t need to see commercials, billboards, and TV commercials with gorgeous supermodels to understand that a bag of chips tastes good. I trust the stores I shop at. If they make a premium store brand product available at a discounted price, I am all in. This is not good news for the big brands that use emotion to drive consumer’s purchases.
Related: What Is An Off Brand Product?
Store Brand Examples
Costco and Trader Joe’s are a great example of retailers that have developed a unique identify around their generic products. People are proud to buy Kirkland Signature products at Costco. It demonstrates they are smart shoppers that use their money effectively. Trader Joe’s has created a fun, whimsical brand identity that attracts a loyal group of shoppers.
Products You Should Buy Generic
The Off Brand Guy teams has spent a lot of time researching and reviewing the best off brand and generic products. The worst off brand product categories include things such as cheese, ice cream, batteries, toothbrush replacement heads, floss, and cologne. The best off brand products include snacks, cereal, spices, pomade, contact solution, and liquor.
According to Marketing Charts, the “majority of consumers feel that the quality of private label products is just as good as national brands”. This is especially true among younger generations like Millennials”. Of course, we are not the only ones looking at saving money with store brand products. What have other experts discovered?
- Off brand juice
- Off brand cleaning products (be careful)
- Store brand eggs
- Generic makeup (we don’t have much advice here)
- Store brand trash bags
- Generic condiments (not salad dressing!)
- Off brand shampoo
Related: Eight Off Brand Products Better Than The Name Brand
What Is Store Brand Food?
