Consumer Brand Preferences Grow Stronger

Consumers today say their preferences for specific brands are growing stronger, although the kinds of brands they prefer have changed. If nothing else, the 2007 installment of Retailing Today’s Top Brands survey reveals that consumers continue to identify with well-supported mass-market labels, whether they have a long national brand pedigree or are associated with trusted retailers.

Of all the established mass-market labels that surfaced in the study, none had stronger consumer affinity than Hanes. Hanes rated at the top of every apparel category. Ranked No. 2 last year after Levi’s, the brand gained the top spot in men’s apparel by going from an 18% ranking in 2006 to 39% in 2007. Hanes also moved up to No. 1 in the children’s category from No. 2 behind Levi’s as its rating advanced from 13% to 19%. In the women’s category, Hanes was ranked No. 1 last year as well, but its rating went up from 17% to 23%. It also held on to the top spot in intimates as its rating gained from 33% to 39%.

Consumer appreciation of brands continues to change, but expectations may be settling in. According to Brand Keys, a label and customer loyalty research firm, customer loyalty and engagement expectations have leveled off for the first time in a decade.

Robert Passikoff, Brand Keys president, said brand differentiation now is about experience and emotional engagement because consumers realize that brands can’t live up to their expectations. “There really are brands that have managed to find ways to engage and create an emotional bond with consumers,” he said.

Consumers confronted riotous cultural, global and political developments over the past year, featuring many loud discussions about what’s happening, but little consensus about how to move forward. Whether it is the presidential elections in the United States, immigration, globalization or climate change, consumers have been subjected to much conflicting information and assertions.

In such an environment, established brands have an advantage as a familiar presence in evolving territory, yet, even if change can be scary, many embrace fresh trends, and the most successful traditional labels have adapted to pace events. Hershey is a brand that has been able to revive—and communicate—its image successfully while simultaneously keeping up with the trends consumers have most readily embraced.

So, as Hershey rolled out line extensions in dark chocolate last year—as it became considered healthy as well as fun—the company jumped from a 33% to 40% rating in the Top Brands candy category, making it not only one of the faster moving labels, but among the more highly rated overall. Second place finisher M&M/Mars rated 10%, down from 13% in 2006. In today’s market, having the savvy and the access to production that allows rapid brand shifts is important.