ICOM’s May survey of 1,530 American consumers reveals how the threat of exodus to store brands varies by category. The following data shows the percentage of consumers in each category who have switched to store brands and away from national brands in the past six months:
- 59% for food and household products;
- 48% for health products;
- 48% for personal care products;
- 23% for pet care products;
- 12% for child care products.
The less-risk-means-more-switch trend revealed itself as well in the category of over-the-counter medicinal healthcare items. ICOM survey responses show a direct correlation between severity and specificity of ailment and openness to switch. The following data depicts the percentage of consumers in each category who have switched to less expensive store brands and away from national brands in the past six months:
- 42.2% for general pain relievers;
- 31.7% for cold and cough medicines;
- 30.8% for allergy remedies;
- 21.5% for heartburn medication.
“Perceived risk, that’s what is driving these key consumer decisions. This is the kind of insight that national brands can use to reach customers with promotions that meet their needs and bring them back,” said ICOM Marketing Director Warren Storey. “These results highlight that understanding customer psychology, and tailoring promotions accordingly, is a significantly more effective win-back strategy than scatter-shot, one-size-fits-all offers.”
Epsilon Targeting Survey Identifies Brand Switching Trend: Less Risk Means More Switch