Consumers Placing Less Value on Brand Name Products

Discount pricing becoming a bigger driver than label names, especially for impulse buys.

June 26, 2015

NEW YORK – Deloitte LLP has released its annual American Pantry Study, an annual review of 354 brands across 34 product categories and this year’s research shows that national brands are continuing to lose standing in consumers’ eyes – as they have since the Great Recession – but perhaps not as much as in recent years.

Overall, the survey shows that consumers are continuing to abandon national food, beverage and household brands, with 73% of CPG categories showing an overall decline in their brands' "must-have" status, meaning that shoppers would purchase whether on sale or not. The study, based on a January online poll of 4,013 consumers, finds that 43% of respondents view store brands as a sacrifice, which is a 10 percentage-point increase compared to last year; and 65% indicate they are more open to trying store-branded products, compared to 73% last year.

When it comes to impulse buys, a whopping 90% of shoppers said they are driven by discount pricing to buy what they don't necessarily need; 81% said they bought a product on impulse because they remembered having seen it; and 63% because they wanted to try a new product.

According to the survey, health, convenience and innovation are huge conversion drivers, with nearly 90% of those surveyed saying when they perceive a product as convenient and healthy, they are attracted and 25% of consumers say they are willing to spend 10% more for healthier products. The same holds for new, or innovative versions of a product. One-third of consumers will do so for a "craft" version of food or beverages.

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