Branded goods a luxury for consumers
More than half of shoppers consider branded goods to be a luxury when they are trying to keep costs down, according to an online panel survey by Buckingham Research.
Nearly 600 consumers took part in the study, with 56 per cent agreeing that branded goods were a luxury purchase, while just 13 per cent disagreed.
Just over a third of respondents agreed that branded food products taste better than supermarket own-label alternatives, while 20 per cent disagreed. But 49 per cent agreed with the statement that brands offer poorer value for money than own brands.
The survey also asked in which categories shoppers plan to cut back their spending over the next 12 months: 37 per cent picked branded ice cream products, 36 per cent chose branded confectionery, alcohol, cakes and biscuits.
“Brands are likely to feel the pinch in this recession as shoppers focus increasingly on price and value for money. But the fact that a third of shoppers believe that branded products taste better shows there is still promise,” says Buckingham Research director Tim Sheard. “The key for brands will be identifying what makes customers tick and ensuring that the messages they send out resonate with shoppers.”
A large proportion of respondents, 58 per cent, plan to cut back on organic goods, while 41 per cent will reduce their spend on Fairtrade products.
However, only 10 per cent will cut spend on branded pet foods.
