Although consumer optimism is currently high, according to Nielsen’s recent global Consumer Confidence Index reports, private label sales continue to grow. So why are shoppers spending less even when the economy is doing better? The report found that, when shoppers turn to low-cost products like private label to save money during times of economic depression, they adapt to and accept these new shopping patterns and don’t revert to their old ones even when the depression ends.
“When coming out of economic downturns, consumers will maintain a more cautious approach with regard to household expenses, having developed a habit of seeking and expecting value for their money,” according to the report. “Private-label is also a new opportunity in developing countries, faster-growing economies and countries recovering from economic decline or stagnation. Therefore, looking ahead, private-label brands have several avenues for future growth around the globe.”