InMobi Survey Reveals – Customer Loyalty Rises for National Brand & Private Label

InMobi, a leading provider of content, monetisation, and marketing technologies that help businesses fuel growth, released new insights from its Q1 2023 survey on the evolving consumer preferences and trends within the consumer-packaged goods (CPG) industry and found that health and beauty care (HBC), household goods, and alcohol top the list of categories with the most loyalty, yet loyalty won’t help for brands that do not prioritise quality.

InMobi's survey revealed consumer behaviour trends in CPG that brands should know:

• HBC (71%), household items (69%), and alcohol (68%) are respectively the most loyal categories with less than 32% of remaining sales up for a potential brand switch.
• In the food & beverage category, private labels and national brands both maintain nearly equal share of loyalty. National brands saw a 6% increase in loyalty from consumers who indicated “no preference” in 2022. Once consumers choose their brands they are likely to stick with the change, exposing risk for brands trying to gain consumers’ loyalty.

“While loyalty and sales in CPG continue to rise, vulnerabilities still exist as consumers tighten budgets and quality will remain as the deciding factor. Private label products have become higher quality and therefore more mainstream among consumers as they tighten budgets, exposing national brands to consumer trade-offs toward private label,” says Jeff Williams, vertical strategy lead, CPG, & Pharma.

As we saw with InMobi’s CPG loyalty study in 2022 and reinforced here in 2023, loyalty to private label and national brand are near parity. This exposes the risk of losing consumers for good once they shift.

Interested in leveraging these insights for your CPG strategy? Meet with our executives to steer you in the right direction. Please contact us to initiate a conversation.