Consumers consider brands a 'luxury'

Despite this the new figures released by Buckingham Research today show that 34% of respondents think that branded products taste better than their supermarket labelled counterparts. When asked about value for money, 49% agreed that branded goods offer less value for money than own-label items, with 19% in disagreement. The research also examined which products were likely to be affected: • 37% stated that they would be buying fewer branded ice cream products over the next 12 months • 36% said they would spend less on branded confectionery, alcoholic drinks, cakes and biscuits • Organic and fair-trade goods are also likely to suffer, with 58% and 41% of consumers saying they were less likely to purchase these items over the next 12 months respectively Tim Sheard, research director at Buckingham Research, commented on the results: "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 that there is still promise. The key for brands will be identifying what makes customers tick and ensuring that the messages they send out resonate with shoppers."