How proprietary brands are addressing customer expectations
In recent years House Brands, also known as Private Labels or Proprietary Brands have seen a rise in popularity. According to the IRI New Product Pacesetters report, they accounted for 10% of the 265 best-selling new items in 2018, contributing $1.4 billion to the value of the Australian FMCG industry. House labels are addressing customer expectations by providing quality products, value for money, and choice, without compromising on quality.
Pros of choosing house brands
- VALUE: House brands offer the buyer greater value, with both competitive pricing and comparable quality being the cornerstone of the concept. There’s also the social and environmental value that comes from buying house brands, meaning that the principles of the business will be well represented in their products. For example, the house brand products of a socially responsible business that cares about the supply chain, sustainability, and the eradication of modern slavery ensures that these same values have been upheld when sourcing for their house products.
- QUALITY: House label products are created to directly meet specific consumer needs adhering to global best practices, assuring quality at every stage of the process, from sourcing to manufacturing to packaging. House label products go through the very same manufacturing and safety processes and are subject to the same standards as their nationally branded counterparts, eliminating any concern a customer may have about reduced quality of products.
- RANGE: Thanks to better product innovations and improved manufacturing processes house brands have transformed themselves into quality product powerhouses, able to utilise their unique customer insight to create broad product ranges to meet their diverse needs.
- TRUST: Familiarity breeds trust, buying a house brand product from a business that a customer already knows gives them the benefit of recognition which instils confidence, trust, and loyalty, allowing them to feel more comfortable to try new products.
- STABILITY: Interestingly, house brands are better able to adapt and respond more quickly when facing market challenges. During the COVID-19 pandemic, private label products saw a rise in popularity due to their high availability and economic value.
