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Consumers are looking for lower prices on products, without sacrificing on quality, according to a new Datamonitor report, "The Global Economic Crisis: The Impact on Consumer Attitudes & Behaviors in the UK." Meanwhile, only a minority of UK respondents reported being brand-loyal. "This provides opportunities for those industry players that can successfully find the 'value sweet spot' whereby the product or service meets or exceeds quality expectations, but at a price that is slightly less than expected," says analyst Daniel Bone. "This applies to all sectors of consumer packaged goods."
Ascent of Private Labels
The growing acceptance of private labels has led some consumers to conclude that they are, in some categories, on par with their brand name equivalents. In fact, a minority of UK respondents felt that private label offerings were in fact the superior option. Datamonitor predicts that this embrace of private label will not recede as the economy improves.
Home Trumps Convenience
The report found a significant number of respondents planned to cook from scratch at home, eschewing convenience and prepared foods.
Alcoholic Drinks Steady
As with previous economic crises, the alcoholic beverage category has held strong. Seen as an affordable luxury, there have been minor drops in the on-trade sector.
Personal Care Destocking
Most consumers reported unchanged personal care consumption. However, a significant number noted that they finish a product off completely before purchasing another.
According to the report, consumers tend to be price-driven in this category. Bone explains, "Consumers' emotional attachment (in household care) is more likely to emanate from their relative time scarcity and dislike of doing household chores. So, while UK consumers in this sector are highly conscious of price-led value, they are careful about making product choices that might make household chores more arduous than necessary."