In addition to enhanced customer perception, private-label products benefit the retailers which sell them, with higher profit margins, lower operating costs, and stable shopper support
According to data released Wednesday, private labels have secured the top spot, with two-thirds of shoppers reaching the conclusion that store brands are just as high-quality as name brands, and another third ranking private-label higher than name brands in terms of quality.
These days, generic and name-brand products can be the same. Many of Costco’s products are made by big names and rebranded as Kirkland products, and sold at the big-box retailer.
In addition to enhanced customer perception, private-label products benefit the retailers which sell them, with higher profit margins, lower operating costs, and stable shopper support.
Bazaarvoice, which focuses on product reviews and user-generated content (UGC) solutions, released its annual Shopper Experience Index on Wednesday.
The report explores how global consumer shopping preferences and behaviour are changing and how businesses should adapt to these changing trends.
The survey aggregates responses from more than 6,000 shoppers across the US, Canada, Mexico, the UK, France, Germany, Spain, and Australia.
The Bazaarvoice Network of 11,500 brands and retailers saw order count increase year-over-year (YOY) by 39%, and review count rose 44% during the same time.
However, shoppers worldwide think differently. For example, in the U.S., more than 75% of shoppers say they always read reviews. While there is a slight preference to shop online (51%) for the upcoming year, rather than in stores (49%), shoppers are willing to shop in-store with the right precautions.
More than 60% of shoppers are open to new products, but 62% said they would switch products if the quality changes. More than half would like to see a mix of UGC and professional photography on product pages to help them decide on new products.
In the UK, 55% of shoppers would pick shopping digitally over in-store in 2021. With multiple lockdowns and having a developed ecommerce infrastructure, it’s not surprising that these shoppers have adapted to purchase more online. During the Covid crisis, 28% preferred researching on brand and retailer websites and buying there with delivery.
Canadian shoppers are most likely to say they always read reviews, regardless of price point. Nearly 51% said they would rather shop in stores.
French shoppers are the most price-motivated shoppers. Over 40% of these shoppers trust translated reviews, and 52% always read reviews irrespective of the price point.
Social commerce really surged in 2020. Nearly half of the world population uses at least one social media platform. Around 32% of U.S. shoppers said they use social media to discover new products, with one in three shoppers making a purchase on social media during the past year.