A recent survey conducted by NielsenIQ reports that 60 percent of Saudi Arabian consumers are buying a wider range of brands than they used to before Covid-19. These findings were published in the Brand Balancing Act, which examines how inflationary pressure is changing the way in which small and medium businesses can justify the worth of their products and remain aligned to the core values that consumers are looking for.
Furthermore, the analysis also showed that 60 percent of KSA consumers prefer to buy locally made products from small businesses in their area, and 62 percent keep trying to support small brands whenever possible. Small brands are perceived as more trustworthy and authentic by 52 percent but are considered harder to find on the shelves of local supermarkets. 43 percent believe small brands are usually more expensive, but they are willing to pay higher prices.
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“Despite being largely ‘unfamiliar’ by respondents in terms of notoriety, small and medium brands have a great opportunity in today’s changed consumer landscape. Our data shows that price pressures and the ongoing pandemic have changed consumer needs, and their relative expectations of brands of different sizes,” explained Lauren Fernandes, the Global Director of Thought Leadership.
When making their purchasing decisions, good value for money, (88 percent) product quality (88 percent) and meeting specific dietary and health needs (88 percent) are of the utmost importance. The trend in functional buying is backed by affordability, as prices continue to rise across categories.
“With 48 percent of global respondents saying that they plan to buy more from smaller brands in the future, clearly, the small and medium sized businesses who can understand buying motives in this new landscape will most likely benefit from consumers’ updated preferences,” she added in the statement. “Today’s macroeconomic environment has created a perfect storm for small and medium-sized businesses to connect with consumers. But that same storm could shadow smaller brands before they can scale. The key will be finding the right levers, based on the right consumer data, to innovate in meaningful ways.”