Monday, June 2nd, 2014 - Roy Morgan Research

Whether you’re a glamour-puss or a savvy-cat when it comes to shopping, how you feel about big-name brands vs. stores’-own brands can influence where you shop. Department store David Jones has announced that they will be adding new DJs-own brand labels to their portfolio in an effort to boost sales in this profitable area. Will this prove to be a shrewd, bold or misguided move?

Data from Roy Morgan Research clearly shows there is a massive distinction between attitudes of Department Store shoppers and Discount Store shoppers towards home-brand products … but that doesn’t mean the DJs Private label won’t become the ‘new black’.  

Almost four in every 10 Australians aged 14+ agree that they buy more stores’-own products than those of well-known brands. This is marginally higher among shoppers at discount stores such as Target (38%), Big W (40%) and Kmart (43%). Meanwhile, David Jones customers are less likely to agree (22%), as are Myer and Harris Scarfe customers (27% and 26% respectively).

% of Australians who agree: ‘I buy more stores’-own products than well-known brands’

shoppers-home-brand

Source: Roy Morgan Single Source (Australia), April 2009-March 2010, n=18,929; April 2013-March 2014, n=17,773. David Jones shoppers: April 2009-March 2010, n=1,607, April 2013-March 2014 n=1,134. Myer shoppers: April 2009-March 2010, n=2,922; April 2013-March 2014, n=2,377. Harris Scarfe shoppers: April 2009-March 2010, n=1,065; April 2013-March 2014, n=896. Big W shoppers: April 2009-March 2010, n=8,449; April 2013-March 2014, n=7,001. Kmart shoppers: April 2009-March 2010, n=7,024; April 2013-March 2014, n=6,337. Target shoppers: April 2009-March 2010, n=6,908; April 2013-March 2014, n=5,622     

Warren Reid, Group Account Director – Consumer Products, Roy Morgan Research, says:

“Different kinds of customers differ dramatically in their attitudes to home-brands. Shoppers at Kmart are more comfortable and accustomed to buying store-branded labels, as are Big W and Target customers. The attitude of Harris Scarfe shoppers to stores’-own products has become similar to that of Myer customers over the last four years. 

 

“Long gone are the days when home-brand products were instantly recognisable thanks to their black-and-gold packaging or the store’s name emblazoned on the label. Nowadays, unless you’re looking really carefully, it can be difficult to pick which products are stores’-own. But then again, what exactly constitutes a home brand these days?

 

“Department store David Jones plans to build on its repertoire of private-label products by adding four new lines to their fashion menu, with the goal of improving sales in this product category. If these new products are of the same quality and style you’d expect from such a high-end retailer, then today’s private-label brands could well become ‘exclusive’ brands in their own right.

 

“The key to success with these new private-label brands will be how much effort and resources David Jones puts into branding activity.”

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Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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Keywords

retail, david jones, kmart, myer, target, harris scarfe, fashion

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