Home Improvement Brands and Private Labels vs. A-Brands

Home improvement projects are a bit of a mixed bag. On the one hand, there’s a certain satisfaction to making your home homier. Getting there, on the other, is a whole other matter. Think staying on budget, DIY-mishaps, or, quite simply, endless options at the hardware store. Choosing the right product for your current projects is sometimes easier said than done. 

Most of us have trusted big-name brands: the ones we recognize, those that have been around forever and the ones that make us feel like we’re getting good quality. But over the last 20 years or so, things have changed. Private labels – store brands that are often cheaper – are popping up all over home improvement stores. They’re tempting, especially if you’re on a budget. But are they really as good as big-name brands? And what does this shift mean for how we shop? Let’s break down the differences between A-brands and private labels, and explore what they mean for your next project. 

Why is Branding Important?

When it comes to home improvement, most of us don’t just grab products off the shelf without doing a little research first. Whether it’s tools, paint or fixtures, we want items that will last and get the job done right. This is where strong branding comes into play – it gives us the reassurance that we’re making the right choice. Here’s why that matters.

Standing Out is Tough

New products hit the market all the time, and features that were once unique get copied by competitors in no time. It’s becoming harder for any product to truly stand out based on what it does alone. But a recognizable brand helps customers remember your product. 

Price Matters More Than Ever

Home improvement projects add up quickly, so many shoppers are on the lookout for affordable options. Price sensitivity in branding is a delicate balancing act, but helps consumers either feel good about spending a little more for quality and reliability or come to terms with shorter-use, budget-friendly options.

Private Labels Are Closing In

Store brands aren’t what they used to be – they’ve stepped up their game. They offer decent quality at lower prices, making it harder for A-brands to justify their cost based on features alone. While a strong brand name still carries weight, consumers see less and less value in A-brands in and of themselves.

Online Orientation

With so much information available online, shoppers do their homework before making a purchase: they’ll compare prices, read reviews and weigh out their options. When products seem equal, a strong brand will be a tie-breaker in their decision.

The Evolution of the Home Improvement Market

Walking into a home improvement store used to mean seeing a lot of familiar brand names. A-brands were the big players, the ones that built their reputations on quality and reliability. Whether it was power tools, hardware or paint, you likely gravitated toward the names you knew.

For example, if we look at Europe in 2023, there’s no denying that power tools are synonymous with Bosch, Velux is top-tier for roof windows and Grohe leads in bathroom products. The rise of private labels has shaken things up a bit – there’s a surprising preference in bathroom products for B&Q, a private label, throughout the UK. Nowadays, DIY stores offer their lines of products at much lower prices. They might not have the same name recognition, but often look pretty similar to the big brands while going for a smaller price. 

The result? Consumers have developed a more positive opinion towards them, rising from 51% approval in 2022 to 53% in 2023. This holds especially true for Spain and Netherlands, where positive outlooks reach up to 63% and 60% respectively. We see the lowest numbers in Austria, Denmark and Poland, but even there, the divide is close to 50-50 (46%, 48% and 48%), meaning private labels are giving A-brand a run for their money.

Key Trends in Private Labels

The expectancy is that private labels will continue to slowly increase in popularity. There’s a couple of reasons why. 

DIYers have always been budget-conscious, but with rising material costs and inflation, consumers are looking for affordable options that won’t break the bank. Next, many private labels now offer improved quality and a higher level of product development, making them a viable choice for those wanting reliability without the premium price tag. As private labels gained traction, consumers started to trust them more, especially when they came from well-known DIY retailers, who have the advantage of knowing what sells well and why. By analyzing sales data and using it to fill in potential gaps – much like Amazon does – they can refine and optimize their private label offerings to better meet customer needs.

The Outlook

So, where is this all headed? Currently, we see that both A-brands and private labels have their place in the home improvement market. Polish and Spanish consumers show a higher preference for A-brands (50% and 48% respectively), while France and Austria have a higher home-brand rate (44% and 47%). 

For specific products, some categories remain dominated by A-brands, such as boilers, paint, locks, roof windows, and security cameras. Meanwhile, garden tools, plugs, duct tape, masking tape, brushes and rollers tend to lean towards private labels. Another factor influencing brand choice is whether the product is bought online; overall, there’s a higher preference for A-brands in online purchases (39% overall, with Poland and the UK leading at 52% and 48%). Here’s what this means.

A-Brands Aren’t Going Anywhere

Even with the rise of private labels, A-brands will continue to make up a sizable portion of the market because of a strong reputation for quality. The competition will keep heating up, and both will need to adapt to meet changing consumer needs.

Private Labels Will Keep Growing

As consumers become more price-conscious, and quality of features continues to advance, private label popularity will also continue to grow. We’re also seeing A-brands launch their own private labels to have two pricing strategies in the same place. 

Mid-Tier Brands Could Struggle

Brands that fall in the middle – neither as premium as A-brands nor as cheap as private labels – may have a harder time finding their footing as consumers lean towards either the high or low ends of the spectrum.

Conclusion

In the world of home improvement, the choice between A-brands and private labels used to come down to what you value most: quality or cost. A-brands offered peace of mind with their long-standing reputations, but with private labels becoming increasingly attractive thanks to their affordability and improving quality, the choice isn’t as clear-cut anymore. With Europe striking a balance between both ends, it’s important to keep track of market movements in order to follow further developments. 

As the DIY world keeps shifting, it’s good to stay in the loop. If you’re looking for more tips or just want to get on top of key information, check out our webinars and blogs. We’re here to help!