In a recent survey of Nielsen households (US) it was unveiled that 85-100% of shoppers will not consider switching from name brands to private labels in certain categories, such as fresh meats, beer/wine or baby food.

The research consisted of three parts: preliminary focus groups, followed by analysis of survey responses, and consumer panel data from 125,000 households.

Trade-downs - often to private label alternatives, rather than cheaper name brands - was revealed to be most likely in non-foods. In household cleansers, for example, 34% of low income shoppers would switch, as would 33% of middle income shoppers.

There's little doubt that price competition at retail will intensify in this economic downturn. That's why appealing to shoppers based on quality and perceived value is going to be an important tactic in order to maintain good margins whenever possible.

Tips for retailers:

• Sales across multiple quality levels within a category help maintain your store appeal with both brand loyalists and shoppers now more willing to trade down. 
• Increased sampling of product across the store can encourage shoppers – especially low income – to make a purchase they had not intended.
• Shoppers are already skipping aisles and may do so even more – tempt them to shop all aisles with featured super-low prices on attractive items in every aisle.
• Cross-promote right at the shelf to stimulate sales in categories consumers are ready to abandon in tough times – for example, coupons for cookies in the milk section.

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