A new study suggests that almost half of consumers (46%) in the UK are buying a greater variety of brands than they were before the Covid crisis. Consumers are also largely in search of their perfect brand match, with 58% of respondents in a recent survey feeling that if they look hard enough, they can find a brand that fits their exact needs.
These findings appeared in a new report by NielsenIQ called the Brand Balancing Act. It focuses on how inflationary pressures are changing the way small and medium brands can justify their worth and remain aligned to the core values sought by consumers.
The analysis also highlighted that 50% of UK consumers prefer to buy locally made products from small businesses in their area. 48% also said they try to support small brands where possible but are finding it harder to find them on the shelf.
Meanwhile, 51% feel that small brands are more authentic and trustworthy than big brands, with 58% prepared to pay a bit more for these brands.
“Despite being largely unfamiliar by respondents in terms of notoriety, small and medium brands have a great opportunity in today’s changed consumer landscape. Our data shows that price pressures and the ongoing pandemic have changed consumer needs, and their relative expectations of brands of different sizes,” said Lauren Fernandes, Global Director of Thought Leadership.
Amongst the list of reasons to buy a brand, good value for money (92%), availability (87%), and product quality (85%) are of utmost importance when making their purchasing decisions. As prices continue to rise across categories, the study highlights that affordability is a top reason backing this trend in functional buying.
“With 48% of global respondents saying that they plan to buy more from smaller brands in the future, clearly, the small and medium-sized businesses who can understand motivators for purchase in this new landscape will most likely benefit from consumers’ updated preferences,” commented Fernandes.
“Today’s macroeconomic environment has created a perfect storm for small and medium-sized businesses to connect with consumers. But that same storm could shadow smaller brands before than can scale. The key will be finding the right levers, based on the right consumer data, to innovate in meaningful ways.”
