Consumers want local and trustworthy
According to the latest NielsenIQ study released mid-July, almost half of UK consumers (46%) say they’re buying a greater variety of brands than they were before Covid-19. Consumers are also largely in search of their perfect brand match, with 58% of UK respondents feeling that if they look hard enough, they can find a brand that fits their exact needs.
These findings appeared in the Brand Balancing Act, which 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:
- 50% of UK consumers prefer to buy locally made products from small businesses in their area
- 48% try to support small brands where possible, but are finding it harder to find them on the shelf
- 51% feel that small brands are more authentic and trustworthy than big brands
- 58% think that small brands are usually more expensive, but consumers are prepared to pay a bit more – this is higher than the global average (47%)
Lauren Fernandes, Global Director of Thought Leadership at Nielsen, says: “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.”
Among 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, affordability is a top reason backing this trend in functional buying.
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