When the Hard Times Are Over, Be Remembered for the Right Reasons

While ongoing supply chain disruption due to the war in Ukraine, the rising cost of fuel, and an impending recession are continuing to compound the cost-of-living crisis across the world, the UK has some unique challenges that are impacting its economic climate and consumer spending. The death of The Queen, political instability, Brexit, and the volatility of the pound have rocked consumer confidence and enhanced uncertainty, leaving the UK suffering the most acute cost-of-living crisis of any G7 nation.

As we enter the final throes of 2022, our new research shows that consumers are concerned about the long-term mental health impact that this prolonged crisis may have and are beginning to take matters into their own hands, looking for money saving hacks to help them cope. This is a considerable shift from the first iteration of our research, undertaken at the start of the crisis, when consumers were fearful for the future and frustrated by the situation, lacking the tools to manage through it. 

Consumers are, now more than ever, expecting brands to join in and take meaningful action to support them. And there are signs that brands are starting to get it. 

For example, Sainsbury’s understood that some consumers fear the potential embarrassment at checkout of not having enough to pay for their shopping. In response the grocer launched their Smart Shop App, which simply displays the customer’s spend progressively as they shop. This helps them avoid checkout-shock, bringing back the sense of control that behavioural scientists helped Sainsbury’s understand is one of the first things people lose in times of instability.

Iceland is leading the way with The Iceland Food Club, an interest-free microloan scheme, where members can access £25-£100 on a pre-loaded card, which can be spent in any Iceland store. These loans are available in six annual windows that align with school holidays, when families are most in need. 

As we look ahead towards 2023, some commentators remain optimistic for what’s to come. However, most expect 2023 to be another year of turbulence for the UK and the need for brands to invest in building consumer trust and brand equity grows even stronger. When the world resolves itself, brands that have invested in providing meaningful value to their consumers will be better set for growth into the future. Those that don’t will be remembered as well, for different reasons.