Consumer Choice?

August 27, 2009

Last weekend, I tried to purchase branded cotton swabs, Q-Tips, actually, and I was unable to do so. There were several facings of cotton swabs, all private label, but Q-Tips, not so much. The only Q-Tip choices were the small box and a travel size.

It seems like every other news piece talks about the consumer’s shift from branded goods to private label. The inference is that many of us who have always been brand loyalists are now willing to try the store brand; it’s all about the flight to frugality.

Well I’m sure that’s true. The numbers certainly support it. Brand sales among fast moving consumer goods (FMCGs) are down, sales of store brands are up.

Now, what does all of this mean to branded FMCGs? If our grocers successfully hit the Reset button via their slotting decisions, what becomes of brands that lack the means to get shelf facings? I can imagine a future where a branded cotton swab, or a branded dog biscuit just about disappears. Choices begin to erode. Then again, maybe that has already happened.

Club stores have effectively achieved this already. Maybe mass grocers are not far behind. That’s not good for brands, and it’s not good for consumers either.

What to do, what to do? Well, I bought the private label cotton swabs, not by choice but by availability. And, yes, they are fine. But I still prefer Q-Tips.

But the next time you are in the grocery, take a closer look at what you see and what you don’t see. Perhaps there’s more to the story about consumer choice.

posted by kathy selker August 27, 2009 in northlichin'

comments

rappstar says: August 28, 2009 at 6:31 pm Kroger stopped carrying Zesta brand oyster crackers several months ago, I assume to lure people to the store brand. Tried em. Didn’t care for em. So I’ve since been buying skyline brand oyster crackers, which are good, but i still miss Zesta. They were a bit salty, and (here’s the secret) a bit buttery. Reply Keith says: August 31, 2009 at 10:29 pm It’s frustrating. I’ve seen research going back more than 10 years that shows when consumers are under economic pressure they will often seek out name brands, even if they have to buy less. It’s a comfort splurge. Not for every category, but more than a few. I’m not sure what the answer is re: the war for facings. Brands cost money to build and maintain. Retailers want help with brutally thin margins and driving faster turns. Those dollars are finite though, and I’d venture to guess the Q-tips folks just haven’t struck the right balance of cost-saving, innovation and promotion. Reply Kate says: September 4, 2009 at 4:31 am i agree, it IS frustrating and you feel manipulated into buying the store’s own brand becasue they have made the decision to stop shelving the national brand. Reply Randal says: September 2, 2009 at 10:05 am Interesting! I find that my behavior is around the specific product. Some things i care less about – but other I will not buy store brand PERIOD! I buy store brand cheese, milk, bagels, even orange juice. However I buy Smuckers strawberry preserves. It is just …. different. I get the cracker comment. Close is ok for most things (especially when they are exactly the same except for the packaging), but everyone has their own proclivities about their food. Reply Jennylee says: May 26, 2011 at 11:06 pm That’s not just logic. That’s really sinesble. Reply