An article appeared on Heart Beat, a newsletter of Hartman Group, argues that the motive behing the increasing demand for private label products may not be only the global recession we have:

"The media and industry analysts have been quick to jump on the current economic crisis bandwagon as the impetus for the recent heightened interest in private label (a.k.a. store brands) sales. They have gazed into their crystal balls to predict the success of private label and, thus, the threat to national brands. The question at hand: is private label a panacea for retailers or a flash in the pan? The fact is, however, that shoppers have been making a significant outmigration toward private label goods long before the recession took hold. Spurred on largely by overall improvements in product quality and improving retail experience, private label is redefining the relationship between retailers and name brand manufacturers. It is of critical importance for brand manufacturers, marketers and retailers on all sides of the private label equation to understand where consumers and shoppers are heading with regard to private label purchases and where they will likely end up on the other side of the recession."

Read the article here.