Private label grows with inflation: what and where we buy

In the midst of an inflationary crisis, private label is positioned as a great option to mitigate the effects of rising prices. According to the EAE Business School, its consumption in Spain continues to grow year after year, with a market share of 46.2%. The pandemic was major.

Seven out of ten consumers say they have purchased more private label products in the past two years. “Private brands are in a very good position to continue growing, as they benefit from moments of crisis and inflation because of their well-recognized value for money,” says report author and EAE Business School professor Alex Allegret. “

Conversely, the manufacturer’s brand falters. «They should leverage their customer loyalty strategies with messages related to the care and well-being of families. In this way, they will continue to reinvent their personalities and will be able to continue to innovate and improve their relationships with consumers”, recommends Allegret.

The survey released by the business school points to the most purchased products. household hygiene items (75.8%) are the most sought after, followed by Dairy products, yogurt and desserts (74.5%), packaged food (61.9%) and dairy products personal hygiene (60,7%).

white label queen mercadona

The report includes the names of the most sought-after white brands. mercadona Leading as the preferred supermarket chain (38.1%) and far behind carrefour (15,3%) y Lidl 12.03%. Together these three establishments represent a clear leadership. A difference is observed in that the frequency of Lidl is somewhat lower in the female group (14.0%) and Mercadona (35.6%) compared to the male group (20.6% and 40.6%, respectively). Similarly, as people get older, purchases at Mercadona tend to decrease slightly and purchases at Carrefour (>15.0%) or Lidl (>9.0%) increase.

Proximity is the main reason for purchasing in an establishment, followed by price and variety. As age progresses, the reason for the residence’s proximity to home becomes more important. People shop at these establishments once or more than once a week.

Loyalty cards are still not fully expanded, their penetration is less than 60%. «This is explained by the high market share of Mercadona, which, being the leader, does not have any kind of loyalty system attached to a specific card. If the leader doesn’t need it, can we question its usefulness? Mercadona is a chain that always listens to the boss (what they call their customer) and, if they don’t have the card, it must be that the boss doesn’t miss it. It is possible to consider that the consumer does not directly experience the benefits of a loyalty card”, explains Allegret.