Triggering Of Article 50 Won’t Stop Consumers Buying Premium Goods
Opinions on post-Brexit Britain are split, with 40% of consumers believing they’ll be “worse off", whereas 37% think they’ll be “better off”
The triggering of Article 50 next week is unlikely to deter consumers from buying premium brands over the next two years, a new report has revealed.
A survey from the Centre for Retail Research and Rakuten Marketing, which interviewed 1,000 UK consumers, has discovered that although consumer prices are rising at an annual rate of more than 3% – few shoppers have any intention of changing their spending habits.
Just 6% of respondents claim they’d flat out refuse to buy an item if faced with a price increase of 10%, with 62% saying they’d purchase their favourite premium brand regardless.
A tipping point does exist, however, as a 15% price would cause 21% of shoppers to switch to a cheaper competitor.
An important consideration for ecommerce businesses, 57% of online buyers are not prepared to pay more for online delivery.
Opinions on post-Brexit Britain are split, with 40% of consumers believing they’ll be “worse off”, whereas 37% believe they’ll be “better off”.
Set to happen on Wednesday 29th March, the process of evoking Article 50 of the Lisbon Treaty will begin a two-year process in which the UK formally leaves the European Union.
Mark Haviland, EVP global development at Rakuten Marketing said:
“Whilst sentiment suggests that people will still purchase premium products if prices rise slightly, the viewpoints on what Brexit will do to spending on these brands overall is completely polarised. The customer segments marketers target is likely to be completely split in how they approach shopping over the next few years.
“Whether audiences are cautious or optimistic about the effects of the decision to leave the EU, retailers need to make use of data and programmatic targeting to engage these different groups in the way that is most relevant to them.
“Our findings make it clear that marketers must work hard to understand their customers better if they are to engage customers successfully in this unsettled market.”