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Private label could be the ‘new black’

Source: Roy Morgan Single Source (Australia), April 2009-March 2010, n=18,929; April 2013-March 2014, n=17,773.
Whether you’re a glamour-puss or a savvy-cat when it comes to shopping, how you feel about big-name brands vs. stores’-own brands can influence where you shop. Department store David Jones has announced that they will be adding new DJs-own brand labels to their portfolio in an effort to boost sales in this profitable area. Will this prove to be a shrewd, bold or misguided move?

Data from Roy Morgan Research clearly shows there is a massive distinction between attitudes of Department Store shoppers and Discount Store shoppers towards home-brand products … but that doesn’t mean the DJs Private label won’t become the ‘new black’.  

Almost four in every 10 Australians aged 14+ agree that they buy more stores’-own products than those of well-known brands. This is marginally higher among shoppers at discount stores such as Target (38%), Big W (40%) and Kmart (43%). Meanwhile, David Jones customers are less likely to agree (22%), as are Myer and Harris Scarfe customers (27% and 26% respectively).

% of Australians who agree: ‘I buy more stores’-own products than well-known brands’

shoppers-home-brand

Source: Roy Morgan Single Source (Australia), April 2009-March 2010, n=18,929; April 2013-March 2014, n=17,773. David Jones shoppers: April 2009-March 2010, n=1,607, April 2013-March 2014 n=1,134. Myer shoppers: April 2009-March 2010, n=2,922; April 2013-March 2014, n=2,377. Harris Scarfe shoppers: April 2009-March 2010, n=1,065; April 2013-March 2014, n=896. Big W shoppers: April 2009-March 2010, n=8,449; April 2013-March 2014, n=7,001. Kmart shoppers: April 2009-March 2010, n=7,024; April 2013-March 2014, n=6,337. Target shoppers: April 2009-March 2010, n=6,908; April 2013-March 2014, n=5,622     

Warren Reid, Group Account Director – Consumer Products, Roy Morgan Research, says:

“Different kinds of customers differ dramatically in their attitudes to home-brands. Shoppers at Kmart are more comfortable and accustomed to buying store-branded labels, as are Big W and Target customers. The attitude of Harris Scarfe shoppers to stores’-own products has become similar to that of Myer customers over the last four years. 

“Long gone are the days when home-brand products were instantly recognisable thanks to their black-and-gold packaging or the store’s name emblazoned on the label. Nowadays, unless you’re looking really carefully, it can be difficult to pick which products are stores’-own. But then again, what exactly constitutes a home brand these days?

“Department store David Jones plans to build on its repertoire of private-label products by adding four new lines to their fashion menu, with the goal of improving sales in this product category. If these new products are of the same quality and style you’d expect from such a high-end retailer, then today’s private-label brands could well become ‘exclusive’ brands in their own right.

“The key to success with these new private-label brands will be how much effort and resources David Jones puts into branding activity.”

For comments or more information please contact:

Warren Reid, Group Account Director – Consumer Products
Telephone: +61 (3) 9224 5161
warren.reid@roymorgan.com

Related research reports

View our extensive range of Department store customer profiles, including David Jones customers, Harris Scarfe customers, Kmart customers, Myer customers and more.  These profiles provide a broad understanding of the target audience, in terms of demographics, attitudes, activities and media usage in Australia.

About Roy Morgan Research

Roy Morgan Research is the largest independent Australian research company, with offices in each state of Australia, as well as in New Zealand, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan Research has over 70 years’ experience in collecting objective, independent information on consumers.

In Australia, Roy Morgan Research is considered to be the authoritative source of information on financial behaviour, readership, voting intentions and consumer confidence. Roy Morgan Research is a specialist in recontact customised surveys which provide invaluable and effective qualitative and quantitative information regarding customers and target markets.

Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size

Percentage Estimate

40%-60%

25% or 75%

10% or 90%

5% or 95%

5,000

±1.4

±1.2

±0.8

±0.6

7,500

±1.1

±1.0

±0.7

±0.5

10,000

±1.0

±0.9

±0.6

±0.4

20,000

±0.7

±0.6

±0.4

±0.3