Research shows no growth in private label purchases

Australians are no more likely to buy private label goods than they were 12 months ago, despite a considerable increase in those who recognise private label brands as good quality.

That’s according to recent Canstar Blue research which found 68% of Australians believe private labels are good quality – A 9% increase upon last year’s response of 59%. Yet only 43% of shoppers in our survey claim to buy private label products; this compares to a very similar result of 44% in the previous year.

Private label products such as Coles Smart Buy, Woolworths Select (soon-to-be-rebranded) and ALDI private labels are designed to provide a cheap alternative across a range of popular products. It was not long ago these brands held a reputation for being lessor-quality knockoffs. Since then, supermarkets have invested heavily to improve their product brands and it seems to have paid off.

Yet while a growing number of consumers are recognising private labels as perfectly legitimate alternatives to brand name products, the majority of us just aren’t budging.

Who is buying private label products?

Private label products are usually cheaper than the brand name alternatives, making them ideal for anyone on a budget. Canstar Blue found a correlation between age of consumers and tendency to purchase private label goods, with younger shoppers considerably more likely to buy than older ones.

Despite these figures, the different age groups held relatively similar opinions as to the quality of private label products.

Canstar Blue survey of 2,925 Australians who had made a purchase from a supermarket in the past month. Canstar Blue research finalised in June 2016, published in July 2016.
This suggests that opinions of quality are not the only influence on the purchase of private label goods, and that other factors such as customer loyalty are playing a role in our purchasing behaviours – particularly in older shoppers.

Private label grocery award winners

Some private label products have become quite well regarded, even receiving a number of Canstar Blue awards for having the most satisfied customers. ALDI particularly excels in this area, rating 5 stars for its private labels, with many of its products taking home an award.

  • Frozen Vegetables – ALDI Market fare
  • Butter – ALDI Beautifully butterfully butter
  • Eggs – ALDI Lodge farms
  • Long life milk – Coles
  • White bread – ALDI Bakers life
  • Wholemeal bread – ALDI Bakers life

For more grocery products and a full list of results, you can compare food & drink here.

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