BY LAURA SANDERSON SHOPPER INSIGHT ANALYST, EVOLUTION INSIGHTS
We know that discount supermarkets are becoming increasingly popular amongst shoppers, leading to an ever increasing market share for retailers such as Aldi and Lidl. But why are they so popular?
One of the biggest differences between the products sold in large supermarkets and discount supermarkets is the availability (or lack thereof) of branded items.
A large portion of products that are available in discounters are what are known as “copycat” brands. Copycat brands are deliberately similar to big brands in terms of the product itself and also the packaging.
In our recent survey of 1,000 shoppers who frequent discounters, we found that a higher proportion of shoppers would choose the copycat product over the branded counterpart (assuming the copycat product is just 10% cheaper and available in the same store).
We looked at 13 categories (coverage included food, drink, household and pet products) and found that, with the exception of Coca-Cola and Nescafé instant coffee, more discount shoppers chose the copycat product over the big branded counterpart.
It’s not just that they believe that copycat products are of an equal or better quality; half (49%) actually believe they are made in the same factory (this is even more prevalent in older shoppers).
Unsurprisingly, household income significantly impacts shoppers’ choice between big brands and copycats within the discounters. For example, a third of the more affluent shoppers chose the big brand Original Source shower gel over the copycat, dropping to just one in seven for poorer households.
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