Brand Loyalty, Down. Private Labels, Up.
Shared by Another Idea from HEILBrice Thursday, May 6, 2010

Retailer Daily posted some telling statistics today that further enforce what we’ve all probably felt in some way: U.S. consumers have adjusted their purchasing over the past two economically down-turned years. Citing recent comScore ARS research, their analysis proves that more shoppers are leaving their preferred brands on the shelves in favor of ones that fit a tightened budget. This trading down trend can be seen in basic categories like health & beauty aids, OTC medications, apparel, food, household products and housewares – some brands falling over 15 percentage points in loyalty since March of 2008.

While this news is unfortunate for top brands, the less expensive guys are feeling a positive shift in share. In a related article on Private Labels, RD breaks down more numbers, except these ones are rising, especially in commodities.  Those numbers come from a recent Neilsen Company, who also gave some helpful tips for those for retailers seeking to boost their private label brand sales:

1. Close the price gap.
2. Enhance product quality.
3. Advertise aggressively.
4. Promote consistently.
5. Shelve advantageously.
6. Reward heavy buyers.
7. Stimulate new user trial.
8. Cross-promote complementary items.
9. Retain high penetration, high frequency and strong niche brands.

For more, check out the whole report.