Hispanic shoppers are more likely than the general public to switch brands, a trend that looks to continue into the near term. A contributing factor to the higher propensity to switch is the acceptance of family members to private-label brands in the household.
While the general market is gradually trending toward sticking with tried-and-true brand names, Hispanic shoppers are becoming more comfortable with switching brands. The question remains whether shoppers will return to their familiar brands given an economic recovery or if their switching behavior will become the new status quo.
In addition to switching brands more often, Hispanic shoppers are also buying fewer and cheaper goods. The silver lining is that some Hispanic shoppers are sticking with familiar brands despite having to occasionally buy less often, and, when they do switch, they often choose store brands.
For Hispanics, have store brands become the new reality? While the number of general-market shoppers switching to store brands seems to have reached a plateau, Hispanic shoppers show few signs of slowing their hunt for better bargains and report that the best bargains come from store brands. Of those buying fewer or cheaper items, nearly three-fourths (73%) indicate that they are also brand switchers.
Store brands continue to gain strength with shoppers and their families. While most shoppers continue to consider name brands as offering greater variety and innovation (at a higher cost), among Hispanics, that figure is much smaller. Significantly more Hispanic shoppers perceive less difference in product quality, and their families are becoming more used to having store brands in the shopping basket. This is even more pronounced at higher income levels ($75,000+).
For more Hispanic Shopper data, click here to download the The Checkout – Issue 5.10