Almost half (43 per cent) of UK consumers think brands should be absorbing rising prices to support their customers and 40 per cent have had to scale back their spending recently, due to their disposable income being reduced, according to new research from researchers Ello.
The 1,000-consumer survey also revealed close to a third (31 per cent) can no longer afford to buy from all of the brands they have been loyal to in the past, while 31 per cent say rising costs are impacting their loyalty to the brands they usually purchase from. Nearly a quarter (24 per cent) have also cancelled subscriptions recently, due to the rising cost of living.
Brand switching is also on the rise amongst consumers, with the data revealing almost one in five (17 per cent) have switched supermarkets to save on rising food prices, with a further 15 per cent considering switching supermarkets in response to price increases. Almost a third (29 per cent) say their energy is now unaffordable and close to one in five (16 per cent) have switched energy supplier in the last 12-months. While more than one in ten (14 per cent) have switched mobile provider in the past year.
Consumers have been left with no choice but to scale back where they’re spending their hard-earned cash, with the research revealing:
- 41 per cent are spending less on out of home experiences, such as eating out, due to the rising cost of living
- 40 per cent are having to cut costs elsewhere, due to rising energy prices
- A third (33 per cent) can't afford to spend on experiences with friends/family, due to the rising cost of living
“The cost of living crisis is a challenge the government, businesses and consumers are all fighting right now," said Michael Kalli, managing director of Ello. "As interest rates, plus prices on everything from food, energy, petrol and general consumer goods continue to rise, the current climate is quite possibly one of the biggest challenges the UK has faced since the onset of the pandemic.
“The statistics are concerning and while price rises are inevitable, there are other avenues for businesses to explore to alleviate some of the pressures on consumers struggling with the rising cost of living.”
In fact, the research uncovered more than two in five (42 per cent) UK consumers are more likely to stay loyal to brands if they could offer them discounts on other products/services they buy.
“While many businesses may feel like they’re fighting a losing battle of increasing prices across their supply chains, the data offers some food for thought on other opportunities to ease the impact of the escalating economic crisis on consumers,” concluded Kalli.
