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Australians prefer supermarket private labels over big names

It appears that private labels are winning over the multinational brands in Australian supermarket Industry. According to a research conducted by Industry watch firm Canstar Blue, the number of Australians who prefer private labels over big names have increased from 44 percent to 65 in the span of six months. Be it butter or egg or any other basic need supply, the current trend among the Australian shoppers is to choose private label, the report says.
Majority of the shoppers when quizzed on their favourite brand answered that it would be supermarket’s own brand products. A lion share of the participants favoured Aldi’s own brand products. In Australia, Aldi has very few big brands in its racks. Its product line consists more of private label items. In the past private labels were considered as a nasty or cheap alternative, but not now. Since more shoppers are inclined towards the budget friendly supermarkets, this trend is expected to continue.
Megan Doyle, the head of Canstar Blue said that there has been a huge change in attitudes in a short space of time. This is considered to be a huge win for the supermarkets. Instead of paying a premium price for the branded goods, supermarkets are sourcing more cheaper and affordable goods while making a good enough margin. Many supermarkets manage these product lines as portfolio of brands. One of the first generic labels to come to Australian market was Franklins supermarkets’ No Frills, which first appeared in 1978. since then almost all major supermarket chains have their own private label products.

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