Followup – What’s in a (Brand) Name?

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

5 Surprising Benefits of Exercising Outdoors in WinterFamily

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

17 Ways to Have More Fun for Less MoneySave

This Free Software Brings Old Laptops Back to LifeMore

30 Household Uses for Baby OilSave

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

Considering a Fixer-Upper? 15 Ways to Avoid a Money PitGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Healthful Treats for Your DogFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

20 Tips for Buying a Home in the Best Location, Location, LocationGrow

30 Awesome Things to Do in RetirementCollege

New Study Ranks the Best States in the U.S.Family

6 Overlooked Ways to Save at Chick-fil-AFamily

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

House Hunters: Beware of These 6 Mortgage MistakesBorrow

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

10 Ways to Save When Your Teen Starts DrivingFamily

The True Cost of Bad CreditCredit & Debt

You’ll Soon Pay More to Shop at CostcoSave

Marijuana Stocks Flaming Out Under TrumpFamily

21 Restaurants Offering Free Food Right NowSaving Money

Manufacturers of brand-name grocery store items are getting concerned about competition from store brands – with good reason.

A couple weeks ago, I was called a fool and attacked for some basic advice I thought was uncontroversial – namely, buying generic items in your grocery store saves you money for what are often identical products.

One comment at the end of 7 Things You Should Always Buy Generic insisted I was “badly misinformed.” One even wrote, “Wouldn’t it be nice if know it all journalists really did know the facts about things, before they went off and jotted down their informative articles?”

Thing is, I did research the facts. I went to the grocery store, I bought store-brand items, and I used them. But I understand the strong feelings – if you spend more money on brand names for the same quality items that you could get for less, you might think I’m calling you a spendthrift. It’s also possible that you can spot differences in some generics that I can’t.

But this week, it turns out I have a powerful ally in my opinion: a consulting firm for brand-name manufacturers.

In a new report from professional services company Deloitte titled The Battle for Brands in a World of Private Labels – private labels are in the same category as generics and store brands – the big news was this…

Store brands (generics) are gaining market share at the expense of national brands. Between 2006 and 2009, market share rose across 74 percent of products in the personal care, household goods and food and beverage categories in the United States.

Interestingly, this report isn’t intended for consumers, but for the makers of those brand-name products for sale in our grocery stores. And here’s a startling admission that many of my critics just refuse to acknowledge…

All too often, retailers are able to take national brand products to third party manufacturers, or even the branded company, and develop a private label version with similar packaging.

That’s just one reason why brand names are suffering, the report says. It then issues this panicky call to arms…

In the battle for the customer, store brands are winning. Unless manufacturers can create a clear reason in the consumer’s mind that the brand is more important than the store when making their choices, the manufacturers are bound to lose margin to the store.

And the advice for those name-brand manufacturers? Stop discounting their products…

National brands should pull back price-related promotions that can decrease consumers’ reference price points. When developing a promotions strategy, consumer product companies should more actively consider non-price-related promotions.

In other words, if you’re a name-brand manufacturer, the message is to avoid competing on price, because you’ll lose. Instead focus on “non-price-related promotions” and otherwise try to “create a clear reason in the consumer’s mind that the brand is more important.” And how do they do this? Advertising.  How else can band-name goods perpetrate the myth that they’re somehow worth the extra money, even when the generic versions are often made with the same process in the same manufacturing facility?

The moral of the story: At least try alternatives to the brand-name goods you usually buy. As some Money Talks News readers have commented, they don’t like the taste of generic foods, or bottled water, or cleaning products. That’s fine – at least they tried them. But if you haven’t yet, this is as good a time as any. As the Deloitte report concludes, “Store brands are here to stay.”

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 8 Great Travel Freebies You Can Get in 2017

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 2,001 more deals!