PRIVATE LABEL GOODS: THE RECESSION’S GOLDEN BOY

Private label products have boomed the last few years. With growing variety, improved quality and increasing availability, more and more consumers are turning to private label goods.

Even the recent global economic downturn hasn’t slowed this market. While many brand names suffered during the global recession, private label goods continue to thrive.

For consumers, it came down to the basic savings.

Facing financial pressures, consumers turned to cheaper options, like private label goods, to save on everyday purchases. Impressed with product quality, variety, and availability, the switch has stuck.

With little to no quality difference between generic goods and brand names, consumers clued into the fact that private label products are created nearly identically to their brand name counterparts.

Growth in the private label goods market is great news for consumers. Offering quality products, at low prices, private label goods provide consumers with an alternative over traditional brand names. it’s no surprise that consumers have noticed the advantages and are reaping the benefits the private label goods market has to offer.

So what are the key factors that have made private label goods immune to economic ebbs and flows?

It comes down to three aspects:

  • Consumer savings: Consumers are increasingly looking for a way to cut costs. With low prices, private label goods satisfy consumer needs, without breaking the bank.
  • Quality products: Quality of private label goods has improved tremendously, making it difficult for consumers to discern any difference between them and brand names.
  • High purchase categories: In an effort to reduce frequent costs, consumers are more apt to purchase private label goods for these categories, while saving brand name purchases for products they use less frequently, spreading their costs over a greater time frame.

With strong demand for private label goods, it is easy take advantage of this boom by offering top-quality, low cost products. When the consumer saves, everyone wins.