The rise of dupes: How retailers and brands can adapt

The explosive rise of dupe videos—where shoppers hunt for budget versions of luxury items—is reshaping how retailers compete for customers. With rising financial pressures, shoppers are increasingly turning to store brands and lower-priced alternatives that mimic higher-end products. This shift is not just a matter of necessity but has also evolved into a culture where consumers proudly share their budget-friendly finds.

Trend: Economic pressures drive the shift

• 60% of consumers switched brands due to cost considerations, per a June 2024 Emarsys survey.
• 52% of US adults would stop buying an item or switch brands if faced with higher prices for the same-sized product or the same price for smaller packaging, according to CivicScience.

How retailers and brands can take advantage: Name brands should consider developing lower-cost versions of popular luxury products to capture consumers looking for dupes within their budget. For example, e.l.f beauty is a common dupe for a Supergoop sunscreen, and it’s sold for a fraction of the price. Retailers can also curate private label alternatives, like Trader Joe’s Watermelon Overnight Face Mask, a dupe for Glow Recipe’s high-end sleep mask.

“Consumer research and customer data analysis are the foundations for development of private label brands and dupe products that can win over shoppers,” said our analyst Sky Canaves. "Retailers should look for the white-space opportunities where their customers are trading down or cutting back, as well as stay abreast of broader trends in consumption across categories."

Trend: Gen Z is driving dupe culture

• By 2030, Gen Z will have an estimated $12.6 trillion in spending power, per Nielsen IQ, but they are choosy about how they spend it.
• 71% of Gen Zers sometimes or always buy a cheaper version of name-brand products, per a Business Insider and YouGov survey.
• 51.1% of Gen Z shoppers purchased a product they discovered on social media within the past six months, a July 2024 EMARKETER survey found.

How retailers and brands can take advantage: “Brands and retailers can look to the online communities that are already engaged with them as a starting point for marketing their offerings,” Canvas said. “Retailers should consider partnering with creators who showcase the latest finds and best deals from their stores, while brands should target category-specific influencers, who may have smaller followings but higher trust levels of trust.”

Trend: Presenting dupes as premium can convert buyers into private label

• About 75% of makeup users believe that affordable makeup works just as well as premium products, per Mintel.
• 53% of retailers expect private label goods to be their top driver of growth in 2024, per Nielsen IQ.
• 55% of shoppers reported buying more private label items this year than in 2023, per FMI.

How retailers and brands can take advantage: Retailers can foster greater affinity for their private label brands by incorporating them into their loyalty programs and offering additional rewards.

“As the competition among private label brands rises, store brands have to become more like national brands in their own right to ensure their enduring appeal to consumers,” Canaves said. “Quality for price is a table stakes expectation nowadays, and regularly refreshed product assortments and appealing packaging are just as important for maintaining the kind of momentum around a brand that will keep shoppers coming back to discover what’s new.”

Read more by downloading our report, “The trends driving ‘dupe’ culture mainstream.”