When asked what some of the most important traits a partner should have, loyalty ranks very highly. It is the same when it comes to a consumer-brand relationship.
Based on a global consumer study conducted by Nielsen, only 9% of consumers in Malaysia are brand loyalists, while 44% love trying new things. Money plays a huge role in a lot of things, and this is also one of the main factors consumers switch brands.
The study demonstrated that consumers are constantly looking for new grocery and household brands. People are no longer afraid to take the risk of buying new products thanks to increasing income levels in developing markets.
Consumers in Asia Pacific are most willing to switch brands or try different products, while those in North America and Europe are less likely to switch brands. Managing Director of Nielsen Malaysia Luca De Nard said, “Brand owners need to get accustomed to this new normal, where the overwhelming majority of consumers are actively or passively open to playing the field when it comes to brands”.
He added that this is partly caused by the Amazon effect, which has provided consumers with more choices and enables price awareness more than previously. “There are Facebook groups in Malaysia, where consumers can hunt or even broker deals for new products at competitive prices. We also have trucks selling fresh meat, poultry and produce in neighbourhoods offering consumers convenience at prices that rival supermarkets. At the same time, traditional grocery retailers are trying to find ways to retain profitability levels in a world where home delivery is beginning to undermine margins,” said Luca.
Additionally, while Malaysians may be drawn by the price, they also commit to brands with superior quality. At the same time, independent opinions and reviews also work well in encouraging a consumer to purchase one brand over another.
What are the reasons that cause you to switch brands?
By: Celestine Foo