According to new data from intelligence firm Synovate, grocery category brands will be under the biggest pressure during 2009. The survey, conducted in several countries, reveals 27% of people surveyed will spend less on cosmetics, 26% will spend less on soft drinks, and 25% will spend less on alcoholic beverages.
The survey also queried respondents on switching brands, finding 10% are planning to switch to a cheaper brand of canned food, 18% already have switched, while 58% say they will stay with the same brand.
And in yet another sign consumers are hesitant to hand over their cash, 51% of respondents say they are now comparing prices before making a decision.
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Synovate global director of knowledge management and insight, Mike Sherman, says the year ahead will be a challenging one for existing brands. “The old rules no longer apply. But in times like this, brands should show what they’re made of. Some will fall by the wayside, some will survive and others will thrive.”