Own label gaining at expense of big brands
Cash-hit shoppers are turning to own label products at the expense of big name brands.
That is one of the findings in the new “Crunchonomics” survey by research company The Work.
More than nine in ten (92%) of consumers are buying own label brands amid the uncertain economic outlook.
Researchers looked at four well-known grocery brands – Coca Cola, Hovis, Birds Eye and Heinz – and tested their “resilience” during the credit crunch.
They found less than a quarter of consumers would stay loyal to their favourite cola brand despite the recession, with just 24% sticking fast to Coca Cola, 25% to Hovis, 33% to Birds Eye and 37% to Heinz.
Only 22% of those polled agreed Coca Cola had a great price, Hovis fared marginally better with 25%, while Heinz scored 35% and Birds Eye 38%, according to the Crunchonomics report.
Report author Charlie Makin commented: “The recession is having a life-altering impact on most of the UK population and we are seeing some radical alterations to their lifestyle and spending patterns.
“Instinctive brand choices are no longer as relevant as people weigh price, quality and their perceptions of what constitutes real value to strike as happy a medium as possible.”
The survey also found that while spending on essential needs remained stable, people were cutting down on luxuries, with the biggest drops in spending relating to eating out, clothing and spending in bars and nightclubs.
Mobile phone usage dropped by 34% over the last three months, while spending on groceries increased by 7%, indicating people were saving by eating in.
The Crunchonomics report is a bimonthly survey of 1,900 people in the UK carried out for media consultants Arena BLM by The Work.