Although private label share of FMCG in Ireland has not yet reached the levels of some of our European counterparts, it is a significant player reaching 25%* value share this year. Private label has become an essential staple in consumer’s shopping baskets and perceptions are overwhelming positive in Europe. Seventy percent of European respondents believe private label is a good alternative to name brands and 69% believe they offer good value for money.
These findings have emerged from a Nielsen Global Survey which polled more than 30,000 online consumers in 60 countries to understand current consumer perceptions about private label quality, value, assortment and packaging.
Price is, of course, a primary driver of consumer’s purchase intent for private label. Exactly three-quarters of Irish respondents believe that private label goods are generally extremely good value for money and 81% say they purchase private label goods to save money. However price alone does not explain this popularity. Almost two thirds believe the quality of private label products is as good as named brands, with 48% claiming some products are of superior quality to named brands. Just 32% feel named brands are worth the extra price.
In Ireland there is scope for private label to grow further as the European average share stands at 30%. Furthermore, 65% of Irish respondents claim they would buy more private label if a larger variety of products were available. Switzerland has the highest private label share in Europe at 45%, followed by the UK and Spain at 41% each.
*Source: Nielsen Ireland Scantrack, MAT w/e 05th October 2014
ABOUT THE NIELSEN GLOBAL SURVEY
The Nielsen Global Survey of Private Label was conducted between Feb. 17 and March 7, 2014, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6 %. This Nielsen survey is based only on the behaviour of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 %Internet penetration or an online population of 10 million for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.