Brand loyalty is fast becoming a thing of the past amongst UK shoppers as they hunt around for the best deals to save cash.
A new study of consumers by cooking appliances firm ElectriQ discovered that 73 per cent of shoppers admitted they would reject a leading brands product if they could get a similar one for less from another brand. Indeed shoppers confessed to feeling loyalty to just seven brands thats down by a half compared with five years ago when they said they stayed steadfast to 15 brands. ElectriQ said that consumers are now checking prices of eight different products on average, before purchasing an item over the value of 100. They are also buying more unbranded products including at discount supermarkets Aldi and Lidl. Furniture, electrical appliances and household products were the categories which consumers feel the least brand loyalty towards. Food and drink, fashion and cosmetics were the sectors which consumers felt the most loyalty to. Read more about discount shopping:
Shopping around for a better deal grew during the recession, and many consumers have continued to shop this way in the time since. Many are happy to trade out a family favourite for an almost identical product from a less well-known brand, if it means saving money,” said Victor Stoica, managing director at ElectriQ. Brand dominance is also crumbling within a wider range of product categories including appliances, gadgets, and even home furnishings. This is in part being driven by the way products are manufactured competitor brands products will often be manufactured in the very same factories, and will simply have different labels or finishes put on them. “This is particularly true within the electrical and appliances categories many big name technology companies products are manufactured in the same factories as ElectrIQ, for example meaning it is entirely possible for brands to sell impressive functionality and well-designed products at prices which are more competitive than some of the big brands, who will often significantly mark up their prices. The survey found that millennials, those in their teens and twenties, have the lowest number of brand loyalties, with five, as generally they have the lowest level of disposable income, and are therefore the most value conscious age group. Those aged slightly older between 50 and 59 were found to have the highest number of brand loyalties with product preferences established over many years of shopping.
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