Are the big brands making a comeback or is the importance of private labels being reinforced? The pandemic has strengthened large brands that have adopted ad hoc communication and advertising strategies. According to the concultora McKinsey, large companies have increased their market share by 1% during the past 2020 and a greater increase is expected throughout this 2021. However, during the confinement a willingness of people to subordinate has also been detected the choice based on the brand to the availability of the product, which has been a new opportunity for private labels.
The growing importance of own brands is a result, among other things, of the growing interest in healthy food. More time means more opportunities to look for healthy solutions. Consumers are becoming more aware. Organic food, but also home production, is also in fashion.
Covid19 pandemic has resulted in to great job loss across the globe and it will affect the purchasing ability of the population at large. This will force market to readjust the product pricing.
The pandemic has increased online shopping. The purchases are restricted to what is available online. In many cases there is less choice online that in store. This will certainly influence purchasing as if premium brands are not available online consumers will be forced to purchase private labels and vice versa.
Brands and private labels have always had a challenged relationship, and the balance changes regularly pending events in society and in economics - all driven by consumer sentiment. Brands offer rational and in particular emotional aspects that many private labels lack, and private labels can act in more tactical ways, offer alternatives etc. This is what consumers in the end explore based on various drivers.
Despite COV19 and the challenges consumer landscape, look at how LVMH overall does really well in luxury which is very much an emotional response rather than a rational one.
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During the time of pandemic, the most imprtant issues are survival and availability. As the increase of online shopping, its definitely depends on what is available at that point of time. So preferences of consumers solely depends on these aspects.
On line buying has increased considerably that has benefited branded products. Their reach to the masses have increased. Branded electronics, cosmetics and grocery items sale increased even in Pandemic with different e-platforms and social media marketing.
As others have said, availability and the greater "risk" of trial when shopping is more cumbersome, are important drivers. However, factors such as increasing prominence of climate change, greenwashing, child labor, animal protection, and more also come into play, especially with increased streaming news consumption. In addition, others' approval or disapproval of brand choices is less salient when one is entertaining less often, if at all. Lost income/jobs also mediate premium vs. generic choices. In sum, I don't think there is one overarching statement to be made on this.
look into www.nielsen.com they always have updated information on retail shopping trends. More especially on PLBs. From there you can get quantified answers to your question. Also visit https://www.mckinsey.com/industries/retail/our-insights/turning-private-labels-into-powerhouse-brands#
moreover, what we notice, the sudden shift to PLBs by consumers, are a justification of previous studies of how PLBs gain/gained prominence. Through tough economic conditions, they become favourable alternates for Manufacturer/National brands during such periods. Lastly, I have also attached an intersting report that can be of value to you.
We are talking about different target groups and even different product categories. Those consumers who choose private labels at a food store or cosmetics can also be loyal to premium brands in fashion or in car market. You have to specify what market(s) do you interested at?
naturally; This virus has changed many user behaviors, making them highly dependent on online purchases, as many of them have helped shorten the time, maintain their health, and protect them from the spread of infection, and studies have proven that Amazon has increased its profits and its sales boomed at the time of the pandemic.
The American Marketing Association defined the brand: a name, symbol, drawing, or a combination of these elements, which allows sellers to distinguish merchandise goods and services and differentiate them from competitor’s products. This is what kotler and others agreed upon, because in their view the brand is an essential component of the organization’s strategy, It adds a new dimension to the products and distinguishes them from other products offered in the market, Brand switching is a situation where a brand loses a once loyal customer to a competitor. In other words, a shopper changes their buying habits, choosing deliberately to purchase another brand instead of their usual choice.