Brand owners are failing to win the loyalty of young consumers in their battle with own-label retailers, according to a report from market research company Mintel.
Its survey of brand development indicates that whereas branded goods appeal to over-45 year-olds, supermarket own-label goods are favoured by consumers under the age of 34. Almost half of those sampled think there is no difference in quality between manufacturers’ brands and retailers’ own-label products.
However, the picture is not entirely gloomy for brand owners since 57 per cent of respondents agreed with the statement that “brands are old friends on whom I rely”.
Consumers are wary of innovation and have a conservative attitude to new products. Only one in five housewives surveyed claim they enjoy experimenting with new products. There is no great difference according to socio-economic group but, as expected, younger housewives tend to be more adventurous.
If consumers try a new product at all, it is usually because it has been recommended by family or friends. Better value emerged as the most influential reason for trying a new product and goes some way to explaining why consumers are so willing to substitute own-labels for brands, according to Mintel.