Store, or private label, brands have seen their popularity grow in the U.S. and Europe as retailers have improved the quality and breadth of offerings to appeal to consumers watching their money more carefully. Once known for being simply cheaper - and not as good - alternatives to name brands, private label products have been one of the bright spots for retailers in an otherwise gloomy economic environment. The shift to private label has also attracted Australian consumers, and recent research from The Nielsen Company has found that such products now account for almost a quarter of all grocery sales Down Under.
In a June 2009 survey, 57 percent of consumers said that they had been switching to private label goods over the past year, and more than a third said that they would continue to purchase them even when economic conditions improve. Younger households were most likely to indicate an affinity for private label products.
"The younger generation would probably not have experienced the old world of private label with questionable quality, limited range and bland packaging. They see private label as a very compelling alternative to proprietary branded goods. Private label products have yet to realize the gains experienced in Europe and North America, but this generation is likely to drive growth in the sector in the coming decades," said Kosta Conomos, Executive Director - Retailer Services, Nielsen Pacific.
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