Brands as signifiers of stability

Regular insights and exclusive content from the 85%.

With the UK inflation rate at 9.9%, and interest rates rising, it’s no surprise lots of the conversations we’ve been having - and are planning to have - are touching on how economic headwinds are impacting buying behaviours.

One conversation we had with Janet in Solihull earlier in the year has really stuck with us. (And we’ll be sharing a more in-depth post about her later).

Janet lives as a single parent on disability benefits in Solihull, just outside Birmingham. She’s a 51 year old, living as a single parent to two, aged 18 and 11 and like all parents wants the best for her children, and to shield them from harm.

We were discussing the cost of living crisis and Janet was explaining how for her it’s OK to ‘trade down’ for some items, but for others it’s not.

This subject of brands as signifiers of stability opens up really interesting thoughts around the role brands play in the lives of their customers in difficult economic times.

Beyond merely fulfilling a product need or desire, it puts them into a deeply emotional place. One that is visible and meaningful well beyond their price point or category. One that gives them a role as a connector - a connector between people but also as a connection to reassurance, safety and familiarity. A nostalgic space, maybe.

As we see report after report on how spending behaviours are changing, it’ll be interesting to see how this thinking permeates the brand and communications strategies of different categories moving forward.

For example, can brands like Sky and Netflix who continue to see their subscriptions slide tap into this to halt decline? To make their brands signifiers of stability?

Or will this behaviour be more prevalent in more tangible categories such as FMCG - with brands needing to defend against own-label more and more?

Given this conversation happened some 5 months ago, when interest rates and inflation were lower, it’ll be interesting to see how buying behaviours have shifted even more when we visit our families over the next few weeks and months.

Discussing with them the brands and categories they see as signifiers of stability they’re not willing to compromise on - and those they are willing to replace - will be revealing.

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We have more visits lined up all over the UK, and exciting plans for the remainder of 2022 and 2023 so keep us on your ‘safe sender’ lists and please do forward on to others you think may find our content informative and useful.
More details can be found on the website. www.meetthe85.com