The more sophisticated the shopper, the more they know that the private label goods are the same as the branded product. The only difference is savings. I'd say the shelf life of branded goods is dated.
A sophisticated consumer - August 30, 2002
Nowadays, when there are a lot of sophisticated customers knowing that everything is the same -- when price/quality factor is almost the same for all the products -- it is not an economical argument that makes us choose one product over another, it is all about emotion.
Why choose no-name red wine over Santa Rita Casa Real? Only because the fist is ten times cheaper? Why buy no-name juice when R.i.c.h. makes me feel better? I love the brands i buy. That's it -- not the money.
Sergey Revin, marketing manager, Rusimport Trade House, Russia - August 31, 2002
Yes, branded products are under increasing pressure. But a well-managed brand will still have an advantage in product development and innovation. If a private label wants to compete with all its aspects, there will probably be no price advantage for it left. It will be just another (private) branded product.
PR and branding consultant, Norway - August 31, 2002
Customers are always looking for new things. Innovations usually come from brands. If private labels want to succeed, they have to invest in research and development. Then they will become more expensive ... and there will be no more advantage for the customer. Therefore: there will always be innovative brands.
Karin Lehmann, Brand consultant - September 1, 2002
The question: What is the shelf life of name brands?
The answer: Whatever the retailer says it is.
The takeaway: 'Brands' beware.
Peter Thomas, marketing manager, Daymon Associates, Japan - September 1, 2002