Are house brands winning? Inflation's impact on consumer choice.

As Malaysia contends with an unexpected inflation increase to 1.8% in February 2024, consumers might adjust by turning to more cost-effective house brands.

With rising prices across various sectors, Malaysians are seeking value for their money. House brand products, known for their affordability compared to established brands, are becoming increasingly attractive. This trend is fueled by content creators who review and test house brand products, making their findings readily available online. These reviews can significantly influence purchasing decisions.

Beyond Price: A Balancing Act

While affordability is a key factor, consumers still consider perceived quality and brand loyalty when making choices. House brand manufacturers face competition not only from established brands but also from other house brand offerings, necessitating strategic pricing strategies.

Retailers Embrace the Opportunity

Hence, this shift towards house brands presents a golden opportunity for retailers. By strategically promoting their house brand offerings and expanding product lines, retailers can cater to a broader range of consumer preferences while offering high-quality, affordable options.

Data Shows House brand Growth in Malaysia

In Malaysia, MailerTrack data also reveals a 5% increase in house brand promotions in 2023 vs 2022, particularly within the health & beauty, grocery, and chilled & frozen categories. This highlights the growing presence of house brand products across various product lines.

Source: MailerTrack

The Future of House Brands

As inflation persists, house brand adoption may become a long-term strategy for managing expenses. Retailers who adapt their offerings and leverage the power of house brands are likely to thrive in this evolving market landscape.