24 Jun No compromise on quality
Gone are the days when buying cheap was synonymous with lower quality.
Today’s budget conscious consumer is no longer willing to compromise on quality. This is what a McKinsey1 study on the new trends in food distribution reveals. More than a passing fad, this is a fundamental trend that is shaking up brands and leading them to rethink their offer. Entry-level products are increasingly matching the quality of major brands.
The challenge for retailers: how to justify the sometimes significant price differences between two products of comparable quality? How can they meet their consumers’ expectations? They have two options: increase the quality of private label in the entry-level category, or merge it with the main category.
What seems certain is that quality is becoming more and more levelled upwards, and that food retailers now consider that improving the quality of the entry level is essential.
The impact of such an evolution on the performance of retail operators is limited : indeed, if consumers buy differently, they still continue to buy and shop in stores.
- Source: State of Grocery Europe CEO Survey, January 2022
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