Positive attitude towards private labels for home improvement products increased among European consumers
Looking at the European home improvement market, we notice many different trends. One of the key trends is that DIY retailers are pushing and promoting their own private labels more and more because of better margins on those products. In the past, private labels were typically associated with poor quality. However, in the last couple of years the quality of private labels has increased. How does that affect the attitude of the European consumer towards private labels? The European Home Improvement Monitor Q3 2019 shows that, just like product quality, the positive consumer attitude towards private labels has increased.
More positive consumer attitude
Based on results of the European Home Improvement Monitor Q3 2019, 51% of all European consumers had a positive attitude towards private labels in the home improvement market in 2018. Furthermore, 40% were neutral, 6% said they had no idea and 3% had a negative attitude towards private labels. Looking at the results in 2019, we see that the positive attitude has increased. Now 53% of European consumers had a positive view on private labels of home improvement products. The share of the neutrals decreased a little to 37%, and 8% said they had no idea. Furthermore, the percentage of European consumers with a negative attitude decreased slightly to 2%.
Positive attitude depends on age, not income
Zooming in on age differences, we clearly see that the oldest generation, in the age of 55 or older, is least positive about private labels. Only 50% of this group has a positive attitude. Younger generations seem to be more positive. Apparently, the older consumers get, the less positive they are about private labels. Not only are they becoming less positive, the negative attitude also increases with age.
It is rather surprising that when it comes to income, there is no noticeable difference in the positive attitude of consumer. With a positive attitude of 53% and 54%, income does not seem to be a defining factor. However, we do see that negative attitude increases the more people are earning.
DIY experience and product groups
Furthermore, the European Home Improvement Monitor Q3 2019 shows that DIY experience affects the consumer attitude towards private labels. European consumers without DIY experience are more neutral towards private labels. Decorators and light DIYers have a more or less similar attitude. In contrast, you do see an increase of negative consumer attitude of renovators. However, renovators are approximately equally positive about private labels as decorators and light DIYers.
Lastly, an obvious difference between product groups becomes visible. European consumers prefer A-brands significantly more than private labels for boilers, roof windows and security products. On the other hand, premium labels are least preferred for sealants and tape.
Although in the past, private labels were seen as the low-cost imitations of branded products, DIY stores are clearly succeeding in improving the position of their private labels. Of course there are differences in age groups and DIY experience level, but in general, consumer attitude towards private label is becoming more positive and less negative. For more detailed information we refer you to the European Home Improvement Monitor Q3 2019.
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