A recent study by global management consultancy Simon-Kucher and market research institute Appinio has revealed a significant shift in German consumer behaviour.
A survey of 1,000 people in the country conducted as part of the study found that 42% of consumers favour private-label brands for their weekly groceries, while 14% rely on them almost entirely.
With approximately one in seven consumers now relying nearly entirely on private labels, Alexander Bilsing, consumer partner at Simon-Kucher, noted, “The shift in shopping habits is structural, not just cyclical. For many, private label brands have long been the first choice – not the second.”
According to the study, five key factors are shaping this shift towards private labels:
1. Consumers Question Brand Value
Many consumers no longer see a clear benefit in purchasing branded goods, as 57% of respondents consider them to be unnecessarily expensive.
According to Bilsing, brands are increasingly struggling to justify their price positioning. “The brand promise no longer resonates with many consumers; the added value of the brand is no longer clearly conveyed,” he noted.
“The loss of trust is measurable – and widespread. When more than half of consumers no longer see any benefit, the business model begins to falter.”
2. Perceptions Of Profiteering
Nearly two in five consumers (39%) believe the pricing of branded products reflects a profit-maximisation strategy rather than superior quality.
Tim Brzoska, consumer partner at Simon-Kucher, observed that brands perceive this as a “warning sign” and added, “It’s crucial to rebuild trust through emotionally engaging target groups and innovations that offer genuine added value.”
3. Price-Driven Decision Making
Data shows that 59% of respondents believe price will be even more significant for their weekly shopping in 2026 compared to 2025.
With 24% of low-income earners and 11% of high-income earners relying mostly on own-brands, shopping has become “a question of income”, according to Bilsing.
He added, “Lower salary, fewer brand-name items. The brand is transforming from a status symbol into a cost factor.”
4. Entrenched Loyalty To Private Labels
As 81% intend to continue purchasing private labels even if prices of A-Brands fall, Bilsing warned that brands face a fundamental credibility crisis.
He claimed, “It’s no secret that private labels often deliver the exact same contents from the exact same production.
“Private labels aren’t just popular because they’re cheap, but because they’re good. And those who predominantly buy private labels rarely go back.”
5. Sustainability Loses Importance
The study found that sustainability is losing importance as a purchasing criterion, a decline not seen in recent years.
Anna Greufe, director at Simon-Kucher, identified price as the “decisive factor” in modern shopping behaviour.
She noted, “Image, environmental friendliness, and fair trade are less convincing in a pinch than the amount on the receipt.”
By Lara Emundts
Source: esmmagazine.com
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