In years gone by, store brands were known as “generic products.” With black and white labels and basic ingredients, these products were anything but fancy. They were available across a limited number of “commodity” CPG categories, and they available in a very limited assortment. But, they did meet consumers’ need for low-cost alternatives to brand name CPG products.
How times have changed. Today, retailers rely on store brands for their margin, to bring differentiation for consumers, and for the simple fact that they can control these products much more easily versus national brands. Consumers still rely on store brands for savings, and store brands are looked upon by many as offering equal, or even superior, quality versus name brand CPG products.
As has been the case in past recessionary periods, the country’s latest economic downturn served to reinforce store brands’ position within the CPG industry. But, the recession has prompted change across national brand manufacturers as well. These CPG players have upped their marketing game.
This report explores current and emerging store brand trends as well as influencing factors that are helping to define the CPG industry of tomorrow. Retailers and manufacturers with a clear understanding of these trends will forge relationships with consumers that will transcend the economic downturn and fortify their position in the CPG world of tomorrow.
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