According to the Numerator, private label brands accounted for 22% of CPG purchases (units basis) made in grocery stores during the first quarter of the year – a figure that was consistent across all income levels. They also report that 40% of shoppers believe that the quality of private-label products has increased over time. With this in mind, we decided to test consumers’ understanding of national versus private label/house brands in the home improvement category.
Our Consumer Pulse report found that just 31% of respondents who shop at Lowe’s recognize Kobalt as a private label/house brand of power tools. Similarly, only 28% of Home Depot shoppers correctly identified Husky as a private label/house brand of power tools. To further illustrate homeowner confusion when it comes to home improvement brands:
Additional details on power tools and outdoor hand tools can be found in this week’s Consumer Pulse report.
Approximately 70% of respondents say they would be likely to consider a private label/house brand for their next purchase of a power tool or outdoor hand tool. With the threat of a recession still looming, national brands should focus on purchase drivers such as quality, variety, availability, and trust to effectively compete against house brands.
Do you want to take the Pulse of your customers? Our Insights team will partner with you to design a study that will help you better understand your customers and their problems, and how your brand can win at retail.
To get additional insight into what this means for brands and retailers, read the entire study.