Markus Geyer, BIPA Managing Director, confirms the results: ‘We have seen significant growth rates for our BIPA brands over the last year and a half. Even though many customers initially bought the products because of the price, they are now sticking with them because the quality is also right.’ Two thirds of respondents (65%) rate the price-performance ratio of own brands as better or much better than that of branded products. This also applies to BIPA own brands: Customers are particularly impressed by the high quality at an affordable price, as well as the fact that many products are manufactured in Austria. For almost one in three (27%), the share of own brands in total purchases is already between 40 and 60 per cent.
Sustainability can be a little more expensive
For more and more customers, the issue of sustainability is playing a greater role alongside price. One in two (51%) are prepared to pay more for environmentally friendly, sustainable products, and among 18 to 29-year-olds this figure is as high as 62 per cent. If the question relates to sustainable own-brand products, the willingness increases again: eight out of ten (78%) would accept higher prices - among 18 to 29-year-olds it is almost every:r (94%). More than half would pay up to 10 per cent more, and almost a third (30%) would even pay up to 20 per cent more.
‘At BIPA, sustainable products are labelled with the green label - this applies to both own brands and industrial brands. We want to make it even easier for customers to make environmentally friendly choices. With our bi good brand, we have been proving for ten years now that sustainable products can also be good value for money. 80 per cent of all products are produced in Austria - and yet customers pay up to 75 per cent less than for branded products of comparable quality,’ says Markus Geyer.
Price-conscious, but not for all products
Despite the trend towards price-conscious shopping across all genders and age groups, it is clear that there are also product categories where consumers pay less attention to price. For example, two thirds (64%) of respondents do not pay any attention to the price of baby products, while the situation is similar for pet food, where 46% never pay attention to the price. Price awareness is particularly pronounced for detergents (65%), toilet paper (62%), shower gel and household cleaners (56% each).
Men are less price-sensitive than women when it comes to skincare (15% never pay attention to price vs. 8% of women), but the opposite is true for shaving products: here, price is not a factor for 23% of women, but only for 17% of men. The difference between the sexes is particularly clear when it comes to cosmetics and make-up: 45 per cent of men state that they never pay attention to the price when buying, compared to only 16 per cent of women.
Women go without more often, use more discount campaigns
In order to reduce costs when shopping at drugstores, women are more willing to do without non-essential items (F: 41% vs. M: 31%). More than half of women (54%) also compare prices more frequently before shopping, while only 45% of men do this. Women also use discount stickers more frequently (F: 40% vs. M: 29%) and buy private labels slightly more often (F: 48% vs. M: 39%).
‘In Austria, it is still mostly women who are responsible for the household and childcare. They are therefore also more likely to do the shopping, especially when it comes to drugstore items. Those who shop more often also compare prices more often and know where there are special offers. Those who shop infrequently usually buy the products they need - regardless of current offers,’ says Markus Geyer.
Proximity to home an important factor when shopping at drugstores
When asked about the reasons for choosing a drugstore, Austrians primarily cited the proximity to their home, the price level, the variety of the product range, special offers and discounts - and in fifth place - the own-brand range. Two thirds (67%) have a good feeling when shopping at a drugstore when they save money and half (50%) when they can take advantage of many offers and discounts. With almost 600 shops throughout Austria, BIPA is always close to its customers, not only in cities but also in rural areas: ‘With an average range of 15,000 items, we offer a wide selection of products for every need. There are now BIPA brands in almost every product range. We want to use them to offer high quality at an affordable price, both now and in the future,’ says BIPA Managing Director Markus Geyer.
About the study
Between 24 August and 4 September 2024, BIPA surveyed around 1,000 people aged 18 and over about their shopping behaviour in drugstores. The results are representative of the Austrian population as a whole.
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