Markus Geyer, Managing Director of BIPA, confirms the findings: “In the last one and a half years, we have seen significant growth in our BIPA brands. Even though many customers initially chose products based on price, they now remain loyal because the quality is also right.” Two-thirds of respondents (65%) rate the price-performance ratio of private labels as better or much better than that of branded products. This also holds true for BIPA's private labels: customers are especially convinced by the high quality at an affordable price, as well as the fact that many products are produced in Austria. For nearly every third person (27%), the share of private labels in total purchases is already between 40 and 60 percent.
Sustainability can be a little more expensive
For an increasing number of customers, sustainability is playing a bigger role alongside price. Every second person (51%) is willing to pay more for eco-friendly, sustainable products, and among 18- to 29-year-olds, this figure rises to 62 percent. When asked about sustainable products from private labels, willingness increases further: Eight out of ten (78%) would accept higher prices – among 18- to 29-year-olds, it’s almost everyone (94%). More than half would be willing to pay up to 10 percent more, and nearly a third (30%) up to 20 percent.
“At BIPA, sustainable products are marked with a green label – this applies to both private labels and industrial brands. We want to make eco-friendly choices even easier for customers. That sustainable products can also be affordable is something we have been proving with our brand bi good for the past ten years. 80 percent of all products are produced in Austria – and yet customers pay up to 75 percent less than for branded products of comparable quality,” says Markus Geyer.
Price conscious, but not for all products
Despite the trend toward price-conscious shopping across all genders and age groups, there are product categories where consumers pay less attention to price. For two-thirds (64%) of respondents, price doesn't matter at all for baby products, and similarly, when it comes to pet food, 46 percent never pay attention to the price. Price awareness is particularly pronounced for laundry detergents (65%), toilet paper (62%), shower gels, and household cleaners (each 56%).
Men are less price-sensitive than women when it comes to skincare products (15% never pay attention to price vs. 8% of women), while the opposite is true for shaving products: for 23 percent of women, price is not an issue, but only for 17 percent of men. The difference between genders is particularly evident in cosmetics and makeup: 45 percent of men report that they never pay attention to price when purchasing, while only 16 percent of women do.
Women more often go without and use more discounts
To reduce costs when shopping at drugstores, women are more often willing to go without non-essential items (F: 41% vs. M: 31%). More than half of women (54%) also compares prices more frequently before shopping, while only 45 percent of men do so. Women also use discount stickers more often (F: 40% vs. M: 29%), and they also purchase private labels slightly more often (F: 48% vs. M: 39%).
“In Austria, it is still mostly women who are responsible for household tasks and child care. They also often take charge of shopping, especially for drugstore items. Those who shop more frequently also compare prices more often and know where to find which offers. Those who shop rarely usually buy only the products they need – regardless of current offers,” notes Markus Geyer.
Proximity to residence is an important criterion for drugstore shopping
When asked about the reasons for choosing a drugstore, Austrians primarily mention proximity to their homes, price level, range of products, special offers and discounts – and already in fifth place – the private label assortment. Two-thirds (67%) feel good about drugstore shopping when they can save, and half (50%) feel good when they can take advantage of many offers and discounts. With nearly 600 stores across Austria, BIPA is always close to its customers, not only in cities but also in rural areas: “With an average assortment of 15,000 items, we offer a wide selection of products for every need. In almost every product category, there are now also BIPA brands. With these, we aim to offer high quality at an affordable price today and in the future,” says BIPA Managing Director Markus Geyer.
About the study
BIPA surveyed approximately 1,000 people aged 18 and older about their shopping behavior in drugstores from August 24 to September 4, 2024. The results are representative of the overall population of Austria.
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