Most Brits are swapping out branded for non-branded products as consumers continue to feel the effect of inflation on the cost of living, a recent report has shown.
According to New research from QuMind, the consumer insights platform, almost all (96 per cent) of Brits say the cost-of-living crisis continues to impact their spending – remaining consistent with polling from October 2022.
About three-quarters (72 per cent) of shoppers are opting out of branded products and choosing own label products to tackle rising grocery bill.
And the situation is unlikely to improve in the second half of the year, with the consumer insights predicting a net percentage decrease in spending on non-essential items. The pressure is being compounded by the rise in mortgage repayments and rental costs.
To help reduce their expenditure, 38 per cent said they are choosing to change their purchasing habits by buying more non-branded products. The most common product swaps for non-branded products are food and beverage (49 per cent) and household products (33 per cent).
Overall, quality is the main driver for consumers of branded products; either because it tastes or works better (44 per cent and 26 per cent) or because it lasts longer (32 per cent). Sustainable production is also a driver for 19 per cent of Brits but appears to have lower influence in the current economic climate.
For example, when faced asked to rank how brands should respond to the cost of materials crisis where they can no longer offer their products at the same price, making concessions in sustainability efforts was ranked first by 37 per cent of Brits, over reducing size (31 per cent), increasing price (23 per cent) and reducing quality (9 per cent).
QuMind believes brands need to understand what will retain customers and encourage those buying non-branded product to switch to theirs.
Mark Ursell, chief executive of QuMind said: “Our analysis shows that FMCG companies are in for a difficult second half of the year with more customers actively looking to reduce their spending on branded products for more cost-effective, non-branded alternatives.
“These brands therefore need to get a clear understanding of what qualities attract their customers and double-down their advertising and marketing efforts to ensure they are brought to the fore in consumers’ minds.”
