explore our market researches

usp

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. 

Fresh Insights Await

Our latest reports

Delve into the newest findings across various market segments, crafted for a cutting-edge overview. Explore our latest 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

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.

Construction

Media orientation H2 2021

2024 161 pages

Explore the media engagement patterns of contractors to optimize your marketing strategies. Dive into a pool of insights that unveils how contractors interact with different media channels.

Construction

European Green Deal Q4 2021

2024 88 pages

Explore the impact and reception of the European Green Deal among architects. Understand how the initiative is influencing architectural practices and sustainability measures.

Construction

BIM Q4 2023

2024 246 pages

Key insights regarding the BIM usage and behaviour of European architects, and our latest future building volumes prognoses

Construction

Purchase Channels H2 2023

2024 123

Explore the buying and ordering behaviour among contractors in H1 2023. Uncover the key channels used, share-of-wallet and much more.

Construction

Behavioural segmentation and media usage report 2023

2023 75 pages

This report provides a comprehensive overview of purchase behaviour, products, and media usage, specifically focusing on European handymen. It delves into how handymen use media, and for what purposes, and examines their habits and preferences in terms of purchasing behaviour.

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.

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.

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.

Home Improvement

Purchase channels Q2 2023

2023 114 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.

Home Improvement

Purchase Channels Q2 2022

2022 124 pages

Uncover the prevalent purchase channels in the home improvement sector during Q2 2022. Delve into consumer preferences and the factors influencing their purchasing decisions.

Home Improvement

Do-it-yourself or do-it-for-me Q4 2022

2022 93 pages

Explore the prevailing trends between DIY and DIFM in Q4 2022. Understand consumer preferences and the factors influencing their choice between DIY and DIFM.

Installation

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.

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.

Installation

Sustainability Q1 2024

2024 99 pages

The European Electrical Installation Monitor report provides a detailed analysis of the sustainable solutions in the installation industry. This report specifically focuses on sustainability aspects in the industry.

Installation

Challenges toward sustainable future Q4 2021

2024 111 pages

Installation

Purchase channels Q4 2021

2024 106 pages

Delve into the training needs within the electrical installation sector. Understand the areas requiring skill development to meet the evolving demands of the industry.

Installation

European Heat Pump Monitor: Homeowners’ insight

2024

The European Heat Pump Monitor: Homeowners’ insight is an annual survey based on about 4.000 online interviews with homeowners, conducted in 8 European countries. The report covers a range of topics, relevant to understand the sentiments, buying behaviours, concerns, and evolving needs of the target group. It includes 8 country-specific insights, with cross-country comparisons, and provide guidance for shaping successful and sustainable strategies for business growth.