Brands face challenge to beat consumer worries about economy

by Nicola Clark Marketing 24-Jun-08, 08:45

LONDON - The rising cost of living and uncertainty over the economy are the biggest issues facing consumers in Britain today, making it vital that brands prove their worth to consumers.

According to McCann Erickson's annual 'Mood of Britain' study, covered exclusively in Marketing, the economic climate has leapfrogged crime and politics to become consumers' primary concern.

The research, which describes the nation as 'collectively holding its breath' and refraining from making major purchases or long-term contract commitments, has huge implications for brands. Fortunately for the UK banking industry, however, it is prime minister Gordon Brown who bears the brunt of consumer anger over economic conditions.

The research also cast light on the growing problem of middle-class debt - where consumers have used credit cards to fund lifestyles beyond their means.

Nikki Crumpton, chief strategy officer at McCann Erickson, said: 'The credit lifestyle and excess are increasingly frowned upon. I think we will see debt go the way of smoking and become socially nacceptable.'