Shopper Digest: Quality Over Quantity

Local brands in the FMCG sector have long been regarded as smaller players, often overshadowed by global giants. Initially, their market presence was limited to regional markets and smaller operations. However, in recent years, this perception has shifted. Local brands are making waves by offering high-quality, unique products that resonate with shoppers. Their ability to innovate and respond swiftly to consumer trends keeps them relevant in a fast-moving industry. As shoppers become more mindful of their spending, value has become a key priority. This is where quality over quantity comes into play, with local brands unafraid to disrupt and stand out in the crowded FMCG landscape.

Local Brand B is a prime example of this shift, emerging as a standout player in the category by doubling its penetration over the last two years, while the market leader has remained stagnant. 

At Kantar, we identify four ways for a brand to grow:  

1. Attracting new shoppers to the category  
2. Converting existing category shoppers to buy or to try 
3. Encouraging existing shoppers to buy more volume  
4. Winning shoppers from competitors  

Ideally, brands should focus on bringing new shoppers to the category to grow overall penetration or increase the volume purchased, both of which contribute to the category’s overall growth. Local Brand B has done just that by attracting new shoppers rather than cannibalising competitors, showcasing its strength in offering fresh and distinctive choices in a fragmented market.  

Even though Local Brand B is priced higher than mass Brand A, it is perceived as delivering excellent value. This is due to its focus on high-quality ingredients, innovative products, and a compelling brand story that connects with consumers seeking something special. Local Brand B’s success demonstrates how a premium pricing strategy can succeed, even in a competitive market. By positioning itself as a higher-quality option, the brand taps into the growing trend of consumers who prioritise quality over quantity.  

For other local brands looking to follow suit, the key is to have a clear value proposition and effectively communicate the benefits of being a premium brand. Emphasising unique products, sustainable practices, and excellent customer service will enhance how customers perceive your brand. In a fragmented market, these strategies can help smaller brands stand out and succeed against more established competitors.

So, what should small local brands do? Focus on delivering quality products and telling a compelling brand story. These elements can help win over customers, even if your prices are higher than larger competitors. Local Brand B’s success proves that premiumisation isn’t just for big players—small brands can use this strategy to grow, too.  

For your business, it’s crucial to understand your target audience, identify what resonates with them, and clearly communicate your brand’s unique value. Through Worldpanel’s tracking data, you’ll gain valuable insights into consumer trends and uncover growth opportunities. This data allows you to make smarter decisions about your products, customer experience, and competitive positioning. With the right insights, your brand can gain the edge it needs to thrive.

At Kantar Worldpanel, we measure penetration—the percentage of a population purchasing a specific brand over a given period. This is a crucial metric for understanding your customer base and identifying opportunities for growth. By tracking penetration on a four-weekly basis, we provide trended performance insights at both category and brand levels. Our Source of Volume/Value Change (SOVC) analysis goes deeper, helping you understand how your brand is growing—whether by attracting new buyers, increasing purchases from existing shoppers, gaining a place in their baskets, or winning shoppers from competitors. With these insights, we can help you develop effective strategies based on shopper behaviour, ensuring efficient and targeted brand planning.

Source: P5 2024 database, Worldpanel Division of Kantar, Malaysia