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Copyright 1998 Information Access Company,
a Thomson Corporation Company;
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Copyright 1998 Capital Cities Media Inc.
WWD

August 26, 1998

SECTION: No. 170, Vol. 175; Pg. 14; ISSN: 0149-5380

IAC-ACC-NO: 21097119

LENGTH: 816 words

HEADLINE: SURVEY SAYS LOYALTY TO BRANDS IS FLEETING.

BYLINE: Owens, Jennifer

BODY:
WASHINGTON -- Consumers might say they're loyal to their favorite brand names, but according to a KSA/NPD Branding Report, retailers can't expect that faithfulness to last long.

That's because the biennial survey, which tracks responses to 180 female apparel brands, found that consumers' choice of the brands they would most likely repurchase has changed dramatically since they were last asked in 1996.

That year, Levi's topped the list. But while Levi's hung onto an eighth-place slot in 1998, it was one of only three brands to remain, including Hanes and Hanes Her Way. The new list places Tommy Hilfiger at top, followed in descending order by Hanes, Victoria's Secret, L.L. Bean, Eddie Bauer, Hanes Her Way, Timberland, Alfred Dunner, Dockers, Levi's and Nike.

According to the survey -- compiled by Kurt Salmon Associates, an international management consulting firm, and the NPD Group, a market research firm based in Port Washington, N.Y. -- overall loyalty to brands declined slightly in 1998. Despite the decline, though, KSA said loyalty continues to be a key factor in brand profitability.

"While higher levels of awareness are certainly desirable, consumer loyalty is the ultimate prize that retailers and manufacturers seek," said Allen Robinson, KSA's manager of consumer marketing. "While gaining a consumer trial [purchase] is difficult enough, a brand that has disappointed a consumer enough to [make the consumer] stop buying has a much more difficult challenge to regain her confidence and trust."

But as consumer loyalty has softened slightly, so has the overall importance shoppers place on brand names: The 1998 survey -- based on more than 550 responses to a mailed questionnaire completed during first quarter -- found 41 percent of women thought a brand name was "very/somewhat important" in purchasing apparel, compared with 46 percent in 1996.

Nevertheless, while loyalty has wavered, the 1998 survey showed that, as in 1996, most consumers still rely on labels when shopping for products they regularly purchase or when fit is important. For example, commodity products like underwear and jeans inspired the highest brand loyalty, while seasonal items, such as swimwear, received the least. The top five categories in which brands were most important to women were: bras (82 percent), underwear (80 percent), hosiery (72 percent), jeans (71 percent) and casual pants (61 percent).

And brands still play a substantial role in helping women judge value, fit and quality. According to the survey, 88 percent of consumers said they find brands important for value, while 83 percent use brands to determine an item's "look after being worn several times." Fit was named as a top issue by 81 percent, while 80 percent cited quality and 68 percent said brands help them determine "how you will feel while wearing it."

KSA found that consumer interest in all brands -- from manufacturer to retail and private label -- is growing. For example, for the first time a retail brand, Victoria's Secret, cracked the survey's top 10 list for consumer awareness -- a list long controlled by manufacturers only. KSA said Victoria's Secret's ascension demonstrates the increasing overall strength of retail brands.

The survey found the average awareness of retail brands in 1998 increased 11.3 percent from 1996, to 62.4 percent, while awareness of the top 10 private label brands jumped to 60.4 percent in 1998, a 13.2 percent increase over 1996. (In comparison, the overall average awareness of all brands surveyed was 48.3 percent.)

The top 10 private labels were, in descending order: Jaclyn Smith, Kathie Lee, Hunt Club, Arizona, St. John's Bay, Bobbie Brooks, Kathy Ireland, Worthington, Cabin Creek and Canyon River Blues.

"The increased efforts of retailers are paying off," said Adelle Kirk, KSA's associate director of consumer marketing. "Retailers have realized the value of branding themselves over the last few years, and it shows. Consumers continue to blur the traditional definitions of national, retail and private brands."

Overall, the list of America's most recognized brands remained essentially stable in 1998 compared with the 1996 survey, with the notable additions of Victoria's Secret, Sheer Energy and Lee jeans. Ranked in order, the 1998 list was topped by Wrangler, which ranked fifth in 1996, followed by Hanes, Calvin Klein, Levi's and Fruit of the Loom. Reebok, Hanes Her Way and Nike all tied for sixth place, followed by Lee, Sheer Energy and Victoria's Secret in ninth.

The survey also registered a sharp rise in brand importance among younger shoppers. According to the survey, 47 percent of consumers under 30 said brands were "very/somewhat important" in choosing what to purchase, compared with only 28 percent in 1996.

KSA said the 19 percent jump made the age bracket the nation's most brand sensitive.

LANGUAGE: ENGLISH

IAC-CREATE-DATE: September 4, 1998

LOAD-DATE: September 05, 1998