The report states that 52 per cent consumers are switching to private labels, with 70 per cent agreeing that these brands are increasingly providing better quality products
As Indian consumers are rethinking their retail choices and are evaluating price, value and pack size while reassessing the role brands play in their lives. 52 per cent consumers are switching to private labels, with 70 per cent agreeing that these brands are increasingly providing better quality products, according to the latest EY Future Consumer Index (FCI) – India edition
As per the EY report, the growing preference for private label products is transforming consumer perceptions, positioning store brands as the favoured alternative to traditional branded options. 70 per cent of consumers believe that private labels meet their needs just as effectively as branded products, the report added.
“Consumer behaviour has traditionally evolved in response to changing economic situations, but the current shifts appear to be more permanent. Retailers are confidently launching private labels and allocating prime shelf space to them, while technology is enhancing the shopping experience by providing consumers with limitless options and the ability to compare products,” stated Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon.
The report highlighted that even when brands turn to innovation and brand improvements such as changing ingredients or formulas to create more value, 34 per cent of respondents perceive these efforts as cost-cutting measures rather than genuine innovation. It further mentioned that 59 per cent of consumers indicated that they only purchase branded products when they are on sale, prioritizing discounts over brand loyalty.
As per the EY report, retailers also appear to be responding to this shift, with 74 per cent of consumers noticing more private label options where they shop and 70 per cent observing more private label items positioned at eye level on store shelves. Additionally, a significant 69 per cent of consumers said that store brands and private labels help them save money.
The report noted that 47 per cent of respondents expressed willingness to return to a branded product if it offers superior taste, quality or performance. Additionally, 44 per cent of consumers indicated they would switch back to branded products for better value for money.
