Thursday, November 23 2017

VietNamNews

Store brands gain in popularity

Update: December, 08/2014 - 08:09

Eighty-four per cent of consumers in Viet Nam say their perception of private label brands has improved over time. — VNA/VNS Photo Thanh Vu

HCM CITY (VNS) — Attitudes toward retailers' private labels or store-branded products are improving throughout Southeast Asia, Nielsen, the global information and measurement company, said in a report released last week.

Most consumers in the region said their perception of private label brands had improved over time and the majority viewed private label brands as a viable alternative to named brands, according to the 2014 Nielsen Global Private Label Report.

Eighty-four per cent of consumers in Viet Nam say their perception of privatelabel brands has improved over time, along with 83 per cent of Thais, 77 per cent of Filipinos, 70 per cent of Malaysians, 66 per cent of Indonesians and 64 per cent of Singaporeans, compared to 71 per cent of consumers globally.

Sentiment is particularly high in the Philippines where 75 per cent of consumers view private label brands as a good alternative to named brands, 69 per cent feel the quality of private label brands is on par with named brands, and 54 per cent believe some private label products are as good or better than brand name products.

Sentiment toward private label offerings is also high in Thailand and Malaysia where 65 per cent and 62 per cent consumers, respectively, believe private label brands are a good alternative to named brands products.

Fifty-five per cent of Thais and 52 per cent of Malaysians feel the quality of private label brands is on par with named brands, while 61 per cent of Thais and 46 per cent of Malaysians believe some private label offerings are as good or better than brand name products.

"Improving perceptions, however, have yet to convert to any kind of significant lift in sales at the check-out, and private label share in the region has increased only slightly over the last decade as named brand promotional activity increases," said Pete Gale, head of Retailer Services for Nielsen in Asia Pacific.

While 66 per cent of Singaporean shoppers and 28 per cent of Thai shoppers are regular private label buyers, in both markets less than 10 per cent of baskets contain a private label product. Overall share of private labels in the region remains low: in Singapore, it is 6.3 per cent, and in Thailand the share sits at just 2.9 per cent.

Perceptions around the value for money offered by private labels are less positive in all Southeast Asia markets than the global average.

Just 46 per cent of Indonesians believe private label brands offer good value for money, the lowest in the region, and sixth lowest globally, followed by 55 per cent in Viet Nam, 57 per cent in Singapore, 58 per cent in Malaysia, 59 per cent in Thailand and 66 per cent in the Philippines, compared to 67 per cent of consumers globally.

Conversely, as sentiment around private label quality lifts, an increasing number of consumers say they are prepared to pay extra for private label products they like.

Filipinos rank highest globally, with 72 per cent saying they are willing to pay the same or more for a private label product they like, along with 69 per cent of Vietnamese, the fifth highest globally, and 64 per cent of Thais, the ninth highest globally. — VNS

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