Perception problems for private labels still lingers in Australia

Posted by AFN Staff Writers on 11th November 2015

PlayDespite an increase in popularity, a September 2015 analysis by Play Market Research has found that private labels are still suffering from the perception that they lack quality.


Studying consumer interactions with private label products, Play Market Research found that consumers are often happy with a private label offering once they try the product, the problem is getting consumers to try it in the first place.


“We’ve found that consumers are hesitant to purchase these products due to issues with the product concept and unappealing packaging. However, once they are in homes, most people actually would become repeat customers,” said ChrisThomas, Founder at Play Market Research.


“Gaining trial is clearly the key challenge for supermarkets since these products perform so strongly. Changing perceptions of the private label image might be more of a long-term goal through various communication efforts, but packaging renovations would be an easy first place to start,” said Thomas.


The research on private labels come from Play Market Research’s first ‘Pop Up Shopper’ community study which sends consumers free food product samples direct to their door as part of testing efforts. The system was introduced as an alternative to traditional product testing where consumers are usually paid to attend a testing centre.
The first month’s testing placed Glad Warp as the highest rating product with it only scoring low points for a lack of ‘uniqueness’. Other products like Red Rock Deli’s ‘Thai Chili and Lime’ flavoured chips were considered to be a good idea but too expensive and Fantastic’s original flavoured rice crackers scored well on pricing value.