Brands are one of the biggest aspects of today's companies that marketers focus on, and for good reason. A good brand is invaluable, and is a key component in gaining and retaining customers. Many companies today are spending more and more money building their brand, and ensuring that everyone who purchases their products will see the brand as a symbol of trust and reliability. For example, the Nike Swoosh is imprinted in the minds of millions as a symbol of trusted footwear, for the right price. In spite of people paying high prices for particular brands, many consumers such as myself have resorted to purchasing cheaper generic brands such as the items Walgreens and Walmart have to offer.
Because of the current ecomomic situation, and the climbing number of consumers switching to generic brands, do you think that these cheaper options will take over the market, consuming more expensive brands that can't lower their prices? Could this lead to a greater number of outsourced jobs as a result?
I don't think the generics will overtake the more expensive brands. There will always be people that will buy the name brands no matter how much they cost because of the perceived value that come with them such as status. Also, with things like food, some generics just don't taste as good as the more expensive brands that they are use to. Labor seems to be the most expensive variable in the manufacturing process, so most likely if the expensive brands take a hit, they most likely would alter labor first. I don't think the movement is wide enough that the profit margins would change enough to make companies that don't already to outsource though.
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