Private Label Products Vs Name Brand Products

Shampoo Labels
Private Label Shampoo Products

Private labels on products has surpassed $143 billion in sales over the past year. This is an increase in $14 billion since 2015, according to Nielsen’s Total Consumer Report.

The rise in sales of private label products is obvious, consumers have become “much more willing to splurge on store brands than they would for name brands” according to Nielsen.

Many consumers have stated they now favorite generic private labels as opposed to name brand private labels.

The stigma that store brand products are not as good as the name brand products is a fast dying one.

Private Label sales chart
Private Label Sales Chart

You can see from the private labels chart above that consumers are spending 37% of their money on the generic brands in 2016. While discount store brand products are still the majority of store brand sales, the have fallen 2.8% in the past three years. Premium private label brands and products have grown in this time, representing over 19% of sales according to Nielsen data.

“the rise of higher-end store brand products has come hand-in-hand with consumers’ inclination to spend more on store brands. The premiumization of private label really comes to life when we look at products by price tier” says Nielsen.

“Consumers are more willing than ever to foot the bill for the right store branded products” said Nielsen.

What establishes brand loyalty?

  • 88% of brand loyalty is product quality.
  • 72% of brand loyalty is customer service.
  • 50% of brand loyalty is price.


Why Are Brand Labels Important?

The 4 main parts to a good private label take into consideration the:

  • Culture – Is the private label appropriate?
  • Legibility – is the custom label easy to read?
  • Visual Appeal – is the private label attractive to the customer base?
  • Practicality – Is the custom label a product that your customers will really use?


Premium Private Label Products Are Trending

Many store brands and grocery stores are leaving behind the bad stigma of non-reliable generic product labels in exchange for a product just as good, or better.

For example Target just released news of their new private label food line ‘Good & Gather’ a few months ago, which includes more than 2,000 products that prioritize taste, quality ingredients, at a great value.

The “Good & Gather’ product labels line will range from food products, to beverage products, dairy, produce, and more.