NEW YORK: Many consumer goods firms are running the risk of "losing their hold" on US shoppers by failing to adequately distinguish their products from own-label alternatives.

Deloitte argued in a report that store brands no longer suffer from "the stigma of inferior quality" among most American consumers.

As evidence of this, the consultancy quoted IRI figures showing the market share of these offerings rose by 74% across the personal care, household, food and beverage categories between 2006 and 2009.

Overall, this equated to more than 23% of volume sales, and 18% of value sales, in the CPG segment in America last year.

Private label now accounts for 20% of purchases made in grocery chains and 18% in supermarkets, with each of these trends beginning before the recession and accelerating during the crisis.

A primary reason for this shift is the 31% price deferential between ranges manufactured directly by retailers and their well-known competitors.

Companies like Target have also introduced a broad portfolio – from Market Pantry and Up & Up to Archer Farms – for a variety of audiences.

Elsewhere, Costco has launched items in partnership with manufacturers like Starbucks, Quaker Oats and Tyson, a move that "blurred the line" between store and premium brands.

Social media platforms like Twitter, user-generated reviews on properties such as Amazon and e-commerce portals like Alice.com have contributed to the adoption of novel behaviours.

"This transparency makes brands less relevant in buying decisions compared to other aspects of the product," Deloitte suggested.

"As a result, some consumers are trading down to lower-priced products, demonstrating reduced brand loyalty."

"Reckless" promotions have encouraged price-sensitivity without achieving the benefits offered by advertising and new product development.

One possible solution for CPG firms is to build equity in a way that is hard for retailers to copy, which can encompass anything from innovative technologies to corporate social responsibility.

An example of this can be seen in Procter & Gamble's objective of securing $50bn in revenue from goods with an "improved environmental profile", which have delivered returns of $13.1bn since 2007.

It is further differentiating itself thanks to initiatives like a scheme for Pampers, donating vaccinations to children in emerging countries for every pack purchased.

Trader Joe's, a speciality chain which is associated with the family trust of one of the founders of German discounter Aldi, has demonstrated how to create a "destination brand".

While Trader Joe's typically sells own-label goods, many are targeted at health-conscious shoppers and sold at a much better value than their rivals, helping it to become "irreplaceable".

Meijer, the grocery and mass merchandiser, has similarly endeavoured to stand out by unveiling a range with a "distinctive history, heritage, or story", like its Michigan Apple Cheesecake.

Looking to the web, companies should provide content that is of genuine interest to netizens, such as by enabling to measure the attributes and cost of all the options available in a particular category.

Mars, the confectionary giant, has also rolled out an online service giving visitors the ability to customise M&Ms, adding personalised colours, text and logos.

Gillette also has an e-store that allows people to order replacement razor blades on a regular basis, a simple tool to keep consumers involved.

Data sourced from Deloitte; additional content by Warc staff