Text 10 Are Brand Names Being Pushed Off the Shelf?

According to the Wall Street Journal: “More and more shoppers are by-passing household names for the cheaper, no-name products one shelf over. This shows that even the biggest and strongest brands in the world are vulnerable.”

It has been clear for some time – principally since recession began to be felt in major economies of the world – that the strength of brands has been under fire. During the second half of the eighties, the Japanese, for example, showed themselves willing to pay a huge premium to buy the goods with a smart label and image to match: they were fashion victims par excellence, be it in choosing their luggage (Luis Vuitton was much favoured) or in buying their booze, where a 20-year old version of a good malt whisky could fetch the equivalent of £60 or more. Over the past year or two, that enthusiasm to spend big money on a classy label has waned markedly.

But we may be witnessing the death of the brand.

First, every story that now appears about the troubles being experienced by makers of luxury goods triggers wise nods and told-you-so frowns.

Two days ago, LVMH in France, which owns Moët et Chandon champagne, Louis Vuitton and the Christian Lacroix fashion house, reported lower earning for the first half of 1993 than it did a year ago. As David Jarvis, in charge of the European operations of drinks company Hiram Walker, puts it: “A few years ago, it might have been considered smart to wear a shirt with a designer’s logo embroidered on the pocket; frankly, it now seems a bit naïf”.

This conclusion fits with one’s instincts. In the straitened nineties, with nearly 3 million out of work and 425, 000 people officially classed as homeless in England alone, conspicuous consumption now seems vulgar rather than chic. But just because flashy, up-market brands have lost some of their appeal, it does not follow that all brands have done so. Cadbury’s Dairy Milk is just as much a brand as Cartier watches. Tastes may have shifted downmarket, but that does not mean that they have shifted from flash-brand to no brand. The second strand of the brand argument is tied intimately with the effects of recession. No one yet knows to what extent the apparent lack of some brands’ appeal is merely a temporary phenomenon. It may well be that, deep down, we would still love to own a Louis Vuiton suitcase rather than one from Woolworth’s but while we are out of work or fearing that our job is at risk, we are not prepared to express that preference by actually spending the cash.

Third, the example of Marlboro is an extreme one. The difference in price between premium brand cigarettes and budget rivals in US had become huge during the 1980s: a packet of Marlboro or Camel might cost 80 per cent more than budget variety. Few brands in any area of consumer goods could hope to maintain so great a premium indefinitely.

And fourth, in looking at the brands argument globally, it is too easy to become misled by what is happening in an individual market. In the UK as a whole, about one third of groceries are under supermarkets’ own labels. In the USA the proportion is 20 per cent. But it does seem that the gradual shift from manufacturer-branded to retailer-branded goods is worldwide.

As David Jarvis from Hiram Walker says: “We believe what brands will retain their halo, but people are less inclined to pay for something just because it’s a fashion accessory. They need to be reassured that the product is intrinsically better.”

Reports of the death of the brand have been exaggerated. Reports of the death of the de luxe brand may be premature, but sound much more plausible.

From: The Guardian

Preparing the Text

A. Studying the language

1. Highlight any useful vocabulary you want to remember in the passage. Use the new words in the situations of your own.

2. Practice the degrees of comparison of adjectives and adverbs. Rewrite each of these sentences, using the words given.

1). Our product is the cheapest on the market.

No other product on the market is as cheap as ours.

2). Our product is the least expensive on the market.

All the other ………………………………………….

3). There are fewer competing brands on the market nowadays than ten years ago.

There aren’t as many …………………………………..

4). One third of consumers prefer their product to ours.

Three times as …………………………………………..

5). All other features of the product are more important than its colour.

The least ………………………………………………….

6) Both the price and the design are equally important for the customers.

The price is just as ………………………………………..

7). Our product costs slightly less than theirs does.

Their products costs a little ……………………………….

8). Their product is nothing like as attractive as ours, we feel.

Our product is far ………………………………………….

9). It’s a bit more difficult to service the new model than the old one.

It isn’t quite…………………………………………………

10). Their product is not as reliable as ours.

Our product is ………………………………………………

11). Our product is more widely available than most of the competing brands.

Most of the ………………………………………………….

12) Price is not as important as quality, as far as our customers are concerned.

Quality ………………………………………………………

B. Studying the text

Read the article once again and fill each gap below with one word.

1). Consumers often prefer to buy … unbranded products rather than more … branded goods. The reason for this seems to be the worldwide … in major economies.

2). In Japan consumers are less likely to buy goods with a fashionable … .

3). In the present economic climate it seems … to spend money on expensive designer products.

4). … brands are less popular, but … brands are still important.

5). Maybe, when the recession is over, designer brands will regain their … .

6). In the 80s, famous-brand cigarettes cost … per cent more than cheap brands. This difference is no longer so … .

7). In the USA proportionally … own-label brands are sold than in Britain.

8). The consumer won’t buy branded goods unless they are … .

C. Points for comments and discussion

Discuss the statement: Nowadays brand names are being pushed off the shelf.

Use the expressions below:

I agree + reason:

That’s right, because …

Right!

That’s true, because …

I couldn’t agree more …

That’s just what I think.

I don’t agree + reason:

That’s not true.

I don’t agree at all.

That’s not quite the way I see it.

I’m not sure I quite agree.

Avoiding giving an opinion:

I really don’t know, I’m afraid.

I’m not really sure.