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Savvy shoppers taking pride in finding private label bargains in the personal care aisle

16 July 2015

Two thirds of consumers globally say price is an important factor when choosing a personal care product. While private label already caters to this need, manufacturers should also offer good value and promote their products through beauty and lifestyle bloggers.

A recent Canadean survey reveals that 74% of consumers globally find price an important factor when choosing a personal care product, while 56% say promotional offers are important. Moreover, the mindset that cheap private label personal care products are less effective is changing across the globe, with 49% of consumers agreeing or strongly agreeing that discounters and private label offerings are the same as branded products, only packaged differently. “This new generation of savvy shoppers often feels proud about finding a private label bargain in the personal care aisle,” says Joanne Hardman, analyst at Canadean.

Private label needs to be positioned around affordability and value

While private label has traditionally been catering to the low-end market, private label manufactures are now also expanding their ranges to meet the needs of consumers who look for good value. “In order to challenge brands, private label needs to position products as being better or at least as good as branded alternatives,” says Hardman. "Manufacturers need to continue to shift consumer attitude towards a positive image of private label by offering good-value-for-money products that people can trust.” For example, many private labels are offering inexpensive alternatives with a packaging design similar to that of a well-known brand in order to instill brand confidence in consumers and simplify the product choice by providing an obvious comparison.

Bloggers a key element for online competition with brands

Canadean also finds that almost half (49%) of consumers globally agree that they like to buy personal care products that are reflective of their attitudes and opinions in life. This highlights opportunities for private labels to better establish their products in the market by pairing up with popular bloggers and personal care gurus. Hardman says: “Bloggers offer a first-hand opinion of new products and give consumers confidence to explore personal care offerings they may not have thought of trying before. Brands are already successful in this channel, which means that private label needs to catch up with this trend to capture consumer attention and compete in the market.”

 

Personal Care Aisle W Logo

Two thirds of consumers globally say price is an important factor when choosing a personal care product.

 

NOTES

All information used in this text are based on the Canadean report 'Private Label Personal Care: Does the shift in consumers’ shopping habits in developed economies mean major brands face a revitalized competition?'

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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