Last month a new online retailer named "Brandless" was launched. Its concept is similar to that of the Dollar Shave Club. Everything on the site is $3.00. Kind of like the Dollar Stores, but 3x as much. Still a significant savings over the prices that people typically pay for branded items. (Gilbertsen, 2017)
So the question is - why do people pay more for brand names?
The answer is that all decisions are emotional. And we bond with brands the same way that we bond with people. So we are willing to pay a bit more for the detergent that our moms used because the scent brings back good memories of our childhood. (Murray, 2013)
On the other hand, private label product sales increased 24.6% from 2009- 2014 (Blair, 2016), and many Millennials are strapped for cash. They have also shown a propensity for buying everything online, so "Brandless" may be their cup of tea. But I don't see them giving up all their brand names - just look at their love for Apple.
Gilbertsen, C. (2017, August 3) Is The Future Brandless? mediapost.com. Retrieved August 4, 2017, from
Murray, P. (2013, February 26) How Emotions Influence What We Buy. psychologytoday.com. Retrieved August 4, 2017, from
Blair, W. (2016, December 8) Private Label Growth Trends Drive Increased M&A Interest. williamblair.com. Retrieved August 4, 2017, from