Brands need to spend with UK recession at an end
With the news that the recession in the UK is officially over, Joe Chetcuti, director of Sheffield-based marketing agency Front, has called on brands to look to the future and spend in order to continue economic growth.
There is good news coming from across the globe with recent reports suggesting that China’s exports are up by 16% and that aircraft holds are being filled for the first time in over a year. But, most importantly, for us in the UK, food and clothing sales in the UK are pointing upwards.
Sales of pants and pasties are surely the two key indicators of British economic health. It is true that some turn to comfort food and firm support in times of recession but I believe that when the supermarkets and high street retailers report year on year sales increases then consumer confidence is back on track and has been for some time. And this means only one thing for brands: who is going to pick up an increase in market share before their competitors?
There are quite large dents in many markets with the high street bearing the brunt with the losses of Woolworths, Zavvi, and MFI amongst others. Brands such as Waterford have also gone along with XL travel and Silverjet. Even Saab is up for sale. (Which car will Creative Directors plug their IPhone into now I hear you ask?)
These highly visible international brands hide the dozens of others, from banks through to booksellers, that have also suffered with the recession. The brands that consumers may have been loyal to are simply not there anymore and the ones that remain may appear to be on shaky ground if they don’t start projecting themselves pretty sharpish.
So despite the recession having a negative effect on nearly everyone, it means that there has never been a better time to attract new customers and remind loyal ones why you are so great.
Consumers will want to spend with the brand that keeps visible, exudes confidence and is actively ready to do business with them rather than waiting for an old favourite to emerge from a two year slumber. Now is the time to look at regaining and increasing market share, reaching out to customers who may be planning to spend or to acquire customers who were loyal to brands that miss the start of the upturn. And for those that do nothing, well, the light at the end of the tunnel may actually turn out to be a competitor’s train, already at full speed, coming the other way.