Any type of serious crisis especially affects essential products (food, energy, transportation), goods and services that substantially condition the family budget. The increase in prices has a direct impact on their purchasing power and, in this situation, they modify their consumption habits and adopt different strategies to optimize their resources.
In this situation, consumers tend to reduce non-essential spending, compare prices and offers on products of similar quality but cheaper, take advantage of promotions, buy in larger quantities or in savings format and plan purchases in advance. And this is where factors that lead to white labels come together.
The white label offers a series of advantages over leading brands, which could be summarized in savings, quality, variety and improvement in the reputation of the marketing establishment. White labels are products manufactured by a supplier who distributes them under the commercial seal of a distributor or business.
The white label had already established itself in Spain as the first option for many consumers during 2020, when its market share reached 40.5% according to the prestigious consulting firm Nielsen, exceeding the European average of 31%. And its evolution points upward.
Market research allows white label distributors to know the needs, preferences, habits and expectations of their potential and current customers, as well as their degree of satisfaction with the products offered, so that they can adapt their offer to demand, improve quality, innovate, differentiate and create added value for its clients.
Market research also helps them monitor the behavior of their competition (private brands and manufacturers), and thus anticipate their movements by designing competitive strategies, adjusting prices, optimizing their distribution and communication channels, and taking advantage of the advantage that comes with the knowledge of the market and the consumer.
In short, market research is an essential tool for white labels, as it allows them to obtain relevant and reliable information to make the right decisions, increase their market share, generate trust and loyalty in their customers, and achieve greater profitability and sustainability. of your business.
At FOCUS Marketing Research South West Europe, we are experts in market research for the FMCG sector. We have extensive experience and an innovative methodology that combines qualitative and quantitative techniques to offer tailored solutions to our clients. Ask us!
