Last Updated on July 10, 2017
As many recession worn Americans begin to spend more money, household-goods manufacturers are increasing their advertising efforts in an attempt to lure back consumers, according to a WallStreet Journal Report.
Several media outlets are reporting on recent statistics that show consumer spending rose in March, which is leading many major consumer products makers to compete for the market share they lost during the recession.
The industry’s ad spending is expected to grow in 2010.
Many major consumer products makers intend to spend an average 9.7 % of their annual sales on advertising this year, up from 8.6 % in 2009, according to a recent Sanford C. Bernstein research, the WallStreet Journal reported.
Emerging from a tail-spinning economy, recent studies show that Americans are more willing to eat out and buy new clothes. However, reigniting brand loyalties in consumers who turned to private label products during the recession could prove difficult for brand consumer product makers. Many consumers who switched to a private label product say those products are just as good or better than the brand.
Private label shares leveled off after a 1.1 percentage point gain last year and a gain of more than 2 percentage points since late 2007, according to Nielsen Data from Sanford Bernstein. That was the biggest one-year jump in private label shares in decades.
“In consumer Staples, you saw consumers trade down” to less expensive products because of the recession, and they were “quite satisfied, said Bill Pecoriello, chief executive of Consumer Edge Research LLC, in the WallStreet Journal.
Household-goods makers like Proctor & Gamble Co., Colgate-Palmolive Co., Kimberly-Clark Corp., Clorox Co. are enhancing the value and innovating their brands to persuade consumers to abandon private label products and return to the fold.
So look for new and improved products to hit the market this year: new scents, new product packaging designs, a closer shaving razor and etc..,