Shopper Marketing - August 2016 - 26


PROGRAMS

Research Finds Consumers
'Primed' for Amazon
Private Label
By Institute Staff

Fully 98% of primary household grocery shoppers in the U.S. buy private-label products. By
early 2017, as many as 70% of these primary
shoppers could be members of Amazon.com's
Prime subscription service. And Prime members are almost unanimously satisfied with the
service that Amazon provides.
These are some of the reasons that Amazon's planned rollout of private-label packaged goods as an exclusive Prime benefit could
become a major disruptive force in the consumer packaged goods industry, according to
exclusive research conducted in May by Carbonview Research, part of Stagnito Business
Information + Edgell Communications, sister
company to the Path to Purchase Institute.
Here's the problem for CPG manufacturers: The shoppers surveyed by Carbonview
consistently rate national brands as more
"trustworthy," "innovative" and "high quality"
than private-label products, although private
label wins out as "good value for the money."
But before any SKUs had even hit the marketplace, these shoppers were rating Amazon's
offerings as more trustworthy and innovative
- and nearly as strong in quality - as national
brands. (See chart on page 28.)
"That's a bit like saying that the 100 years
of trustworthiness and innovativeness [that
26

y SHOPPER MARKETING AUGUST 2016

brands] have built up has disappeared as
soon as Amazon comes out with a privatelabel product," says Rich Ratcliff, Carbonview
senior vice president.
Already, most shoppers buy from Amazon
at least occasionally: three-fourths of survey
respondents shop at the e-tail giant multiple
times per month and one-third do so several times a week. Half of respondents said
they like Amazon more because it is adding
private-label products, and 13% of non-Prime
members said they would join the service for
the first time to gain access to the items.
"Satisfaction with Prime membership is insanely high," Ratcliff says, underlining that a
full 97% of members report they are happy
with the service that Amazon provides.
Millennials seem to love everything that
Amazon does more than any other generation and are more likely to be Prime members:
63% are already signed up, compared with
55% of Gen Xers and 45% of Baby Boomers.
They also are more likely to purchase private
labels, with 26% reporting they buy the private label whenever it is available compared
to 18% of shoppers on average.
"That generation is the first that knows specifically how to take technology and make it
the glue of their lives, and Amazon is their



Table of Contents for the Digital Edition of Shopper Marketing - August 2016

Contents
Shopper Marketing - August 2016 - bellyband1
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Shopper Marketing - August 2016 - 1
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