News I published 21 March 2023
Brand image is more important than ever as consumers show as much preference for private labels as for name brands
The home improvement industry is showing a trend towards greater emphasis on private labels, which is largely being driven by DIY stores. These stores aim to attract consumers to their premises by providing a broad range of renowned brand products, while also offering a more affordable option through their private label products.
Previously, private label brands were often viewed as low-quality and inferior copies of well-known name brands, but it appears that this perception has shifted. Recent results of USP Marketing Consultancy’s European Home Improvement Monitor show that consumers are increasingly positive about private labels, which may have serious consequences for the name brands.
Consumers show an equal preference for name brands and private labels
Our results show that European consumers are quite receptive to private labels, with over 50% expressing a positive outlook toward them. Conversely, only a small fraction of consumers hold a negative perception of private labels. The positive attitude towards private labels seems to be somewhat influenced by the DIY experience. The more experience consumers have, the more likely they are to be positive about private labels.
Aside from this positive attitude towards private labels, we see that preference for them is growing. As opposed to last year, the share of consumers preferring private labels is now the same as the share preferring name brands. Clearly, the label of lower quality that used to be attached to private label products is not that strong anymore, which has major consequences for name brands.
Quality no longer justifies the premium price of name brands
In the past, name brands have been able to justify their high prices by claiming that their products are of superior quality compared to the lower-priced private-label alternatives. However, this argument has become less convincing over time, as private label products have improved in quality and are more and more perceived as on par with name brands.
Of course, there are still some name-brand products that truly offer superior quality or unique features that cannot be replicated by private labels. However, for many products, the quality difference is negligible enough for consumers to opt for private-label products. That makes it increasingly difficult for name brands to justify their higher prices based on quality alone.
Brilliant branding and innovation are more important than ever
It seems name brands cannot just rely on superior quality anymore to distinguish themselves and justify their premium prices. This makes innovation and a strong brand image more important than ever, as those are the keys for name brands to keep distinguishing themselves from the private labels in the eyes of the consumer.
Name brands can maintain their dominance in product innovation by excelling at research and development and producing new and innovative products. This image of innovation can reinforce a strong brand image that creates trust, loyalty, and affinity among customers, making them more likely to choose the name brand over private labels.
The focus of this branding will differ from product group to product group, though. We researched consumers’ attitudes and brand preferences for home improvement products in 14 product groups and have seen major differences. For an overview of branding in the European home improvement sector, we refer you to USP Marketing Consultancy’s European Home Improvement Monitor.
Read more
12 December 2024 I Dirk Hoogenboom
Buying Behavior of Handymen
12 December 2024 I Henri Busker
Handymen Radar – Private Labels vs. Branded Products
12 December 2024 I Dirk Hoogenboom
Sustainability and Painting – What Matters Most?
12 December 2024 I Zeynep Kutsal
Are European Painters Getting Younger?
Fresh Insights Await
Our relevant reports
Delve into the newest findings across various market segments, crafted for a cutting-edge overview. Explore our insightful reports, brimming with up-to-date data, trend analyses, and in-depth examinations, all tailored to provide you with a comprehensive understanding of the current market dynamics.
Construction
Home Improvement
Installation
Special reports
Construction
Decision making process Q3 2024
2024 87 pages
Unveil the decision-making processes in the construction industry through the lens of European architects. Discover the factors that influence crucial decisions and the interplay among different stakeholders.
1,850 Euro
Construction
Prefab H1 2024
2024 63 pages
Discover the adoption rate and benefits of prefabrication technology among European contractors in H1 2024. Understand the driving forces behind prefab usage and its impact on project efficiency and cost-saving.
6,300 Euro
Construction
Sustainability 2024
2024 72 pages
Painter Insight Monitor 2024 will focus on understanding the specific needs, preferences, and challenges faced by painters when it comes to sustainable products.
10,815 Euro
Construction
Importance of branding & branding funnels 2024
2024 62 pages
This report offers a comprehensive overview of importance of branding and branding funnels with a specific focus on European handymen. Brand behaviour is covered for each country, showing purchasing power, differences regarding quality, sustainability, online shopping, innovation-habit and private labels,
8,400 Euro
Construction
Future of construction Q2 2024
2024 82 pages
Explore the evolving future in construction sector among European architects in Q2 2024. Delve into the factors driving material preferences and the impact on construction aesthetics and sustainability.
1,850 Euro
Construction
Trends in material usage Q1 2024
2024 102 pages
Explore the evolving trends in material usage among European architects in Q1 2024. Delve into the factors driving material preferences and the impact on construction aesthetics and sustainability.
1,850 Euro
Home Improvement
European Garden Monitor
2023 43 pages
Explore the European Garden Monitor, a comprehensive platform dedicated to garden health monitoring in Europe. Access valuable resources and expert advice today.
12,000 Euro
Home Improvement
Purchase channels Q2 2024
2024 90 pages
The European Home Improvement Monitor offers valuable insights on purchase channels in the European home improvement industry, examining the evolving preferences and behaviors of consumers across traditional retail and emerging online platforms.
3,150 Euro
Home Improvement
Sustainability Q1 2024
2024 81 pages
Delve into sustainability trends in the home improvement sector in Q1 2024. Discover consumer preferences and the shift towards eco-friendly home improvement solutions.
3,150 Euro
Home Improvement
DIY versus DIFM Q4 2021
2024 113 pages
This report is a must-have if you’re in the home improvement industry. It provides a wealth of information on the behaviour of DIY and DIFM consumers, their motivations, and the factors that influence their purchasing decisions.
3,150 Euro
Home Improvement
DIY or DIFM Q4 2023
2024 70
Explore the prevailing trends between DIY and DIFM in Q4 2023. Understand consumer preferences and the factors influencing their choice between DIY and DIFM.
3,150 Euro
Home Improvement
Branding Q3 2023
2023 93 pages
This report offers an extensive overview of the home improvement industry, with a focus on branding and the most popular brands within different categories. Within this report, you will gain insights into how customers perceive home improvement brands and what motivates them to buy certain products.
3,150 Euro
Installation
Prefab Q3 2024
2024 110 pages
Uncover the adoption of prefabricated products in HVAC installations during Q2 2022. Delve into the benefits and challenges associated with prefabrication in HVAC.
2,650 Euro
Installation
Branding Q3 2024
2024 74 pages
Discover the power of branding in the home improvement sector. Explore how strong branding influences consumer preferences and purchase decisions.
3,150 Euro
Installation
Prefab Q3 2024
2024 119 pages
This report offers a comprehensive view of the installers’ involvement and needs regarding prefabricated electrical installations.
3,150 Euro
Installation
Smart & Connected Products Q2 2024
2024 120 pages
This report provides a comprehensive view of the attitudes of installers toward smart building solutions, specifically among electrical installers and their clients. In the report, you will find insights into the installers' experiences with installing smart products and the willingness of end users to invest in such solutions, as well as their motivations and pain points.
3,150 Euro
Installation
Smart and connected products Q2 2024
2024 129
This report provides a comprehensive view of the attitudes of installers toward smart building solutions, specifically among HVAC installers, plumbers and their clients. In the report, you will find insights into the installers' experiences with installing smart products and the willingness of end users to invest in such solutions, as well as their motivations and pain points.
3,150 Euro
Installation
BIM Q1 2024
2024 84 pages
The European Mechanical Installation Monitor report provides a detailed analysis of the plumbing and HVAC industry. This report specifically focuses on BIM adaptation in the industry.
2,650 Euro
Special reports
European Sustainability Report 2024
2024 51 pages
This report provides in-depth insights based on triangulation of key market information and data as well as data from USP Marketing Consultancy’s key monitors that are carried out year in, year out. The focus of this report is on the most important stakeholders within the construction industry, namely architects, contractors, electrical and HVAC installers within The United Kingdom, The Netherlands, Belgium, Germany, Poland, France, Italy, and Spain.
3,950 Euro