Table of Contents
Executive Summary
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- The issues
- Many consumers do not identify a difference between national and store brands
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- Figure 1: Attitudes around private label selection September 2015
- Chinese Canadians have less positive attitudes towards private label
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- Figure 2: Select attitudes towards private label, any agree – Chinese Canadians vs overall, September 2015
- The opportunities
- Opportunity to support growth through high-quality offerings
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- Figure 3: Select attitudes towards private label, September 2015
- Private label resonates with Millennials
- Store brands can look to President’s Choice as a best-in-class example
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- Figure 4: Trust, by private label and national brands, September 2015
- What it means
The Market – What You Need to Know
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- Canada’s uncertain economy supports private label
- The ageing Millennial cohort bodes well for private label
Market Factors
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- Recent economic activities have negatively impacted consumer confidence
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- Figure 5: Consumer confidence index, monthly, January 2008-January 2015
- A growing 25-34 and 35-44-year-old population bodes well for private label
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- Figure 6: Projected trends in the age structure of the Canadian population, 2014-19
- Canada’s increasingly ethnically diverse population may present a challenge for private label
Key Players – What You Need to Know
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- Retailers expanding reach by going small
- Private label contributing to change in pricing model
- Room for continued private label development in Canada
What’s Working?
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- President’s Choice represents best-in-class among consumers
- Sobeys leveraging Jamie Oliver partnership to support corporate mission
- Walmart expanding private label offering
- Costco’s consumers are reliant on Kirkland Signature products
What’s Struggling?
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- Food’s share of Canadians’ spend declined
- Penetration of private label remains stagnant
What’s Next?
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- Room for continued investment on private label among retailers
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- Figure 7: Share of private label vs name brand launches, by country, 2010-14
- Private label is positioned well in the battle for Millennials
The Consumer – What You Need to Know
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- Store brand purchase driven by more than price
- Over half of consumers see private as providing equal quality
- National brands hold trust advantage over most private label brands
Private Label Usage
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- Nearly all Canadians use private label
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- Figure 8: Percent of typical grocery basket that includes private label, September 2015
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- Figure 9: Percent of consumers who state private label accounts for over half of basket, by retailer, September 2015
- Younger consumers are more likely to use private label
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- Figure 10: Percent of consumers who state private label accounts for over half of basket, by age, September 2015
Importance of Private Label
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- Private label supports in-store traffic
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- Figure 11: Percent of consumers who state store brands influence where they grocery shop, by age, September 2015
- Experience drives usage of private label
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- Figure 12: Brand-related reasons for choosing a store brand product or brand, September 2015
- Price’s importance in choosing private label
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- Figure 13: Price-related reasons for choosing a store brand product or brand, September 2015
- Private label is not just perceived to be a cheap alternative to national brands
- Private label faces fewer hurdles to listing innovation
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- Figure 14: Attitudes around private label selection, September 2015
- Demand for private label varies by category
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- Figure 15: Preference for store and national brands, by category, September 2015
Brand Trust
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- Trust in national brands exceeds private label
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- Figure 16: Trust, by private label and national brands, September 2015
- Trust in President’s Choice on par with leading national brands
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- Figure 17: Trust (mean), by private label and national brands, September 2015
- Awareness a pillar in building trust
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- Figure 18: Trustworthiness vs non-awareness, September 2015
- Older consumers more likely to trust national brands
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- Figure 19: Mean trustworthiness score, by age, by national brands measured, September 2015
Population Groups
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- Chinese Canadians are less likely to gravitate to private label
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- Figure 20: Select reasons for choosing a store brand product or brand, Chinese Canadians vs overall population, September 2015
- Private label holds more influence with Millennials
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- Figure 21: Agreement in select attitudinal statements, 18-34-year-olds vs over-35s, September 2015
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- Figure 22: Stated usage of private label category, 18-34-year-olds vs over-35s, September 2015
- Parents hold more positive attitudes towards private label
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- Figure 23: Agreement in select attitudes, parents vs non-parents, September 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
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