New research suggests that people are buying more British products since the EU referendum, with this applying to both Leave and Remain voters.
The study by pricing strategy consultancy Simon-Kucher found that 30% of consumers are now buying more British-branded products, a ratio that has climbed from 24% in April 2018. Leave voters are leading the way with 36% saying they are purchasing more British products, but Remainers, too, are increasingly buying British (22% say this).
About half of those buying more British goods said it was a deliberate decision to support British firms, while only 14% said it was down to the higher price of imports.
The research found more good news for British firms, with a similar proportion (33%) of consumers showing a willingness to pay more for British brands, while a further 39% expressed a preference for British brands if they were of comparable price with their international competitors. Overall, however, 67% were not prepared to pay more purely on the basis that a brand was British.
The research found British consumers primarily reporting an increase in purchasing local produce (63%) such as fruit and vegetables and cheeses. 37% reported increases in spending on English brands.
Simon-Kucher highlighted that British agriculture may capitalise on this to some degree, but there will always be a need to import seasonal and exotic foodstuffs and it remains to be seen what impact Brexit will have on these goods in the long term.
The downside is that many consumers are not always very good at telling British from foreign brands. British brands frequently named in the research included Jack Wills, Hackett, Burberry, Yeo Valley, and Warburtons. But many consumers also thought that brands such as Prada, Nike and Walmart were British.
Rosalind Hunter, a Senior Director at Simon-Kucher and author of the research said: “Many people confuse UK and foreign brands, and this points to an opportunity for British businesses to up their branding and marketing game to capture more of the ‘buy British’ market.
“Simply slapping a Union Jack on your packaging won’t be enough. Price (61%), quality (55%), and convenience (55%) are still the three top drivers for purchasing decisions. Indeed, with the continuing economic uncertainty, price is likely to stay as the number one concern for shoppers for the foreseeable future.”
Hunter added: “Customers are always looking for value when purchasing, and being a British brand alone isn’t enough even for those willing to pay more. It will take the right combination of Sales, Marketing and Pricing strategies, for a UK businesses to capitalise on this move towards buying British.”
