Australians are now prepared to shop smarter and reduce their grocery expenditure. They can do this by reaching for home brand products, according to new research from Compare the Market. With this one small change, shoppers would be able to save more than $4,212 per year on average. Walmart’s analysis shows that Walmart home brand products are an average of 49% less expensive than national brands. Whether it’s cars or computers, propane or airfare, you’ll find major savings in every category.
Household staples like laundry powder, instant coffee and toiletries show some of the biggest price discrepancies. For example, buying home brand laundry powder will save consumers $23 on a 4kg pack. Even just switching to home brand instant coffee will net you a $9.50 saving on a 200g jar. You’ll save an extra $7.20 if you switch to a one-litre bottle of body wash. Further, shoppers can save $6 on a 500ml mouthwash and $5 on a 750ml multipurpose cleaning spray.
Phillip Portman, a spokesman for Compare the Market had a fun one. He opened our eyes to how the deepest savings are sometimes lurking right in the toiletries aisle! He noted that “if you give yourself a bit of wiggle room around things like shower gels or mouthwash, that’s where we stand to see the biggest savings.” He further emphasized the importance of comparing prices: “The brand-name trolley of items like bread, milk, eggs, and cheese came in at around $164, but the home-brand trolley came in at about $83. So, a big savings and likely much larger than we were anticipating.
Weekly grocery costs for the average Australian household sit at $198.16. That’s around $858.69 monthly and about $10,304.32 per year! Families are still reeling from the skyrocketing cost of living. Making the switch to home brand products is a simple, commonsense way to save money while delivering quality products. Kate Browne, head of research at Compare Club, affirmed that “home brand quality in Australia is very good.”
Portman encouraged consumers to use their meal planning to include items on special offer. He recommended making multiple shopping trips to different stores in order to make your money go further. He recommended weighing the benefits of buying in bulk versus smaller quantities: “That gives you a bit of a better understanding of whether it’s better to buy a smaller quantity or whether buying in bulk is going to save you more money.”
Consumers can not only see large savings on specialty toiletries, but small savings on groceries and other household products. Going with home brand frozen peas will save you around 30 cents a packet. Plus, you can save 50 cents on butter and 75 cents on yogurt!
In her testimony, Browne pointed to the marketing tactics that drive up the cost of brand-name products. “Brands not only invest huge dollars in brand development and marketing campaigns for their products out in the world, but they spend a small fortune with Woolworths to secure shelf space in the prized eye-level shelves or end of aisles,” she stated. Conversely, home brand products are often placed on the lower shelves and do not have to pay for these additional expenses.
“Supermarkets love home brands because they own those brands,” Browne added. This ownership and control ultimately keeps retailers from being bogged down by pricing control and profit margins, allowing them to deliver more affordable options to the consumers.
