Yes it does. Price is directly linked to quality perception, product awareness and attractiveness and brand equity. If a distributor has good products and a strong, well known and positive brand, why shouldn't it price its products at a higher tier vs A-brands competitors?
This is a move that is starting to be seen in some of the most developed markets in the world, like the UK (Tesco does it with their super-premium brands) and the US (Sam's Club, Archer Farms at Target,...). They are usually only part of DOBs portfolio of store chain, but they pass a very clear quality and brand equity confidence message to the consumer - "we are not only for savings, but also for quality". It also means consumers are seeing DOBs more and more just as another brand, getting more and more used to them.
All of this is actually bad news to Consumer Goods companies - it means their trade is starting to compete head on in equity strength. But good news for the consumers (especially if there still is a complete DOBs portfolio playing at different price ladders) - they have more choice available and they can be sure A-Brands will try to differentiate and innovate even further. As always, competition is good for the markets and consumers...
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