Monday, 15 February 2010
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Are Name Brands Going Away?
We've been talking about brand names and generics recently, so this article from CNN. com today is especially timely. And cutesycharm@Xanga's post from earlier today is doubly appropriate.
Apparently, stores are starting to push the national brands off their shelves to make room for their generic store brands. The store profiled in the article is,perhaps unsurprisingly, Wal-Mart. They have recently removed Hefty and Glad brand storage bags off their shelves and replaced them with their Great Value brand.
The new move is being pushed as an effort to "simplify." They claim consumers are being overwhelmed by too many brands, and that people are choosing the generic brands more frequently. The article also has Wal-Mart taking the role of almost a crusader against senseless brand expansion, where companies release numerous products under their particular branding.
Personally, I chafe at the idea of less competition on the shelves. I think it's an exaggeration, not to mention slightly insulting, to say that consumers are practically confused by the multitude of choices. I had noticed that it's been harder to find my favorite laudnry detergent these days (Arm & Hammer) but I hadn't thought it was a concerted effort to remove it from shelves unless the company decided to play ball, so to speak, with Wal-Mart.
What do you think? Should stores reduce the number of brands they carry to make room for more generics? Have you noticed any disappearing brands in your stores?
Check out the full article here: http://money.cnn.com/2010/02/15/news/companies/walmart_dropping_brands/
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Comments (12)
but i like brand names :\
i don't get confused !
Overwhelmed? Really? Very interesting...
If I had to buy something, I'd prefer that I had choices rather than having to stick choose between a few brands. What if the generic brand doesn't make exactly what you want?
i like having choices! if they get taken away from me my business will go elsewhere, undoubtedly.
i don't buy very many things generic brand... it would just make me not shop where they don't have the brand i want
Reminds me of that thing I just learned in economics... if there is no competition, whats the point in producing a quality good? I hate Walmart. :/
Why would WalMart take over the laundry detergent market? You would think SOMETHING would be more profitable than that. But...if WalMart is doing it, they are making money with it or else it wouldn't be happening. It makes me wonder who really owns all those generic brands. Are we putting smaller business OUT of business, and more money in the pockets of those who will eventually tell us who we can or can't buy from and for how much?
If they take away the products I prefer, they will lose my business.
I don't mind more generics, but I don't think there is any reason to remove the name brands from the shelves. I rarely buy name brands, but I don't like the choice being snatched away from me.
This is pretty much based on their assumption, apparently, that if they remove the name brands that people will still come there and, upon realizing it, just go ahead and buy a generic brand instead rather than go somewhere else where they do sell the name brand. While you have to factor in the people who buy mostly generic anyway, or those that are in enough of a hurry or just don't want to take the time to travel around and actually would just buy a generic anyway, but I think that ultimately Wal-Mart will lose business if it does this too much. There are still a lot of people can afford to buy name brand items only, or mostly. And there are still a lot of people who do not like to buy generics because they think it makes them look poor or that there is some shame in that whether or not they can actually afford to overspend on name brands.
Also, I agree with the OP. If there is a lack of competition on the shelves, Wal-Mart will hike up its prices and no longer be the store known for the cheaper stuff. And, considering how they already dominate just about every place they are in (especially the smaller towns), it will leave residents in a lot of places with nowhere to go but Wal-Mart regardless of whether or not it is cheaper anymore.
This is underhanded. I really haven't liked the direction Wal-Mart has taken ever since Sam Walton's daughter got hold of it. Its just been a downward spiral.
Yes, some of it is business is as business does, but there is a point when it becomes ridiculous and perhaps even a bit unethical. Certainly at least underhanded. Putting generics on the shelves right next to name brands is not necessarily underhanded. However, this sort of thing that the article talks about here is.
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