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Traditional distinctions between private labels and national brands have become so subtle that most consumers can’t tell the difference

June 30, 2025 //  by Finnovate

Private-label brands are creating shopper confusion, according to a new study from global retail platform First Insight. The study indicates that traditional distinctions between private labels and national brands have become so subtle that most consumers can’t tell the difference. Results show that 71% of surveyed consumers believed they could recognize a private label when making a purchase, but 72% failed to do so when shown side-by-side images of store-brand and national-brand products. The new data adds an interesting angle to Mondelez International’s claim that Aldi is violating trademark law by selling private-label versions of some of its most popular products. Mondelez International is now suing Aldi, claiming the discount grocer copied its packaging designs. “Defendant’s actions are likely to deceive and confuse consumers and dilute the distinctive quality of Mondelez’s unique product packaging, and if not stopped, threaten to irreparably harm Mondelez and its valuable brands,” the lawsuit states. The First Insight study shows that shoppers enjoy finding “the dupe.” 47% of consumers say they’ve tried a private-label product specifically because it was a duplicate of a name-brand item. In addition, 44% of shoppers—including 70% of those earning more than $150,000 per year—say they’re more likely to try a private label if it’s marketed as a dupe of a high-end product. Private label also continues to gain a strong foothold in the grocery marketplace. “Shoppers aren’t loyal to brand names the way they used to be,” said Greg Petro, CEO of First Insight. “They’re loyal to price, quality, and marketing. This creates a highly competitive arena where the best—yet not necessarily the most well-known—brands will win.”

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