Percent of Respondents Who "Buy The Brand They Want Most" (March 2010 vs. March 2009 vs. March 2008, Total U.S.) |
Category | Segment | Mar-08 | Mar-09 | Mar-10 | Net Shift 2010 vs. 2008 |
Health & Beauty Aids |
| Toothpaste | 67% | 64% | 57% | -10 |
| Mouth rinse | 61% | 59% | 44% | -17 |
| Shampoo | 65% | 64% | 52% | -13 |
OTC | Cough/Cold/Allergy | 58% | 59% | 43% | -15 |
Apparel | Jeans | 54% | 49% | 39% | -15 |
Food |
| Soup | 56% | 51% | 52% | -4 |
| Pasta sauce | 53% | 48% | 45% | -8 |
| Fruit juice | 51% | 44% | 40% | -11 |
Household Products |
| Laundry detergent | 57% | 50% | 47% | -10 |
| Facial tissue | 43% | 40% | 39% | -4 |
| Paper towels | 36% | 34% | 35% | -1 |
Housewares | Small Appliances | 45% | 38% | 34% | -11 |
Source: comScore ARS, May 2010 |
U.S. consumers were also asked about the type of brand they did buy when not their preferred one, with a focus on the importance of promotional discounts and lower price in causing the shift.
Consumer Sentiment on "Trading Down" (March 2010 vs. March 2008 Total U.S). |
Category | Net Shift 2008 to 2010 |
| "I buy the brand I want most" | "I sometimes buy a different brand if it is on sale" | "I buy less expensive brands to save money" |
Health & Beauty Aids | -14% | 7% | 7% |
OTC Medications | -15% | 10% | 5% |
Apparel | -15% | 3% | 12% |
Food | -7% | 4% | 3% |
Consumables | -5% | 4% | 1% |
Housewares | -11% | 7% | 4% |
Source: comScore, Inc, May 2010 |
The Center For Media Research recently posted "Research Brief: Brand Loyalty Suffers During Recession" with some great insights into the "new normal" for consumers...
"According to the recent results of a comScore study on brand loyalty among consumer goods products, showing a significant decline in consumers' allegiance to their favorite brands during the past two years, the percentage of shoppers who typically buy the brands they want most has steadily declined across the categories examined. In March 2010, less than 50% of shoppers reported purchasing the brand they want most.comScore chairman, Gian Fulgoni, said "A decline in loyalty to consumer goods brands is typically one of the byproducts of a recession as consumers give greater consideration to price... (our) research... has quantified the impact of the trading down' effect... highlighting consumers' increasing willingness to switch brands in the face of pocketbook constraints."
In some categories, particularly CPG household products and housewares, consumers were already more likely to buy a brand they didn't "want most" at the start of the recession. Some categories (e.g., paper towels, facial tissue) have not seen increased trading down from a brand perspective, possibly because such categories have led the way in tiering, allowing consumers to stick with their preferred brand at a more attractive price point.
As the economic downturn has persisted, this trading down behavior appears to be spreading to categories that were previously immune. The increases in trading down in these categories have largely occurred in the last year. Higher ticket items have seen large increases in trading down possibly due to larger absolute savings on a single purchase."