Diana Marszalek 19 Jun 2023 // 12:51PM GMT
NEW YORK — Troubled by the likes of inflation, climate change and geopolitics, consumers are increasingly favoring brands that provide a sense of safety over excitement, according to Edelman's new Brand Trust report.
Specifically, the survey of 13,802 adults in 14 countries (Brazil, Canada, China, France, Germany, India, Japan, Mexico, Saudi Arabia, South Africa, South Korea, UAE, UK & US) found 73% of consumers want brands that increase their sense of safety and security, up nine points from 2022. Only 27% of respondents want brands that spark adventure and thrill-seeking.
Brands, though, are going to have to withstand more serious scrutiny than a year ago before striking that kind of connection with consumers.
The study found 58% of consumers say they do more research before they buy something, and 58% say they’re making fewer impulse purchases than a year ago. Additionally, 64% of consumers are more likely to consider a brand’s health impact before buying and 55% will consider its environmental impact.
Geopolitics is influencing purchasing decisions. Some 77% of respondents said they will not buy a brand because of where it’s headquartered. That includes at least 75% of each age group polled.
Consumer vulnerability is up, with respondents most worried about climate change (70%), inflation (67%), global conflict (67%) and their own health (64%) — and in turn need to trust brands more, according to the report.
Most participants (72%) said it is more important to trust the brands they buy or use today than in the past. That’s four points higher than last year.
Trust is one of the top three reasons people buy a brand (88%). The other two are good value for the money (91%) and best quality (89%).
Earning that trust is going to require brands holding themselves accountable. Most respondents said brands go wrong when they try to engage without relevance (76%) or authenticity (51%).
Gen Z increasingly holds sway over consumers. Up seven points from last year, 68% of respondents said Gen Z influences where and how they shop. There was a 13-point increase among boomers.
All age groups said its more important to trust brands than it was in the past including Gen Z (81%, up seven points), 27-42 (77%, up one point), 43-58 (70%, up four), and 59+ (62%, up five points).
Gen Z has also heightened expectations that brands show their value. Some 60% of respondents said brands should make it easier to see their values and stands when they make a purchase. That’s a three-point rise from last year.
Most Gen Zers (63%), meantime, assume brands that don’t communicate its societal values is doing nothing or hiding something. When considering all age groups, that number falls to 53%.
The purchase funnel has collapsed, according to the study, with 78% of consumers saying that they uncover things that make them loyal to a brand after the first purchase. Rather than a funnel, the new consumer journey is an ongoing loop of attraction and engagement during which a consumer will evaluate a brand’s competency, ethics, and relevancy, ultimately determining if they trust it before buying again, according to the trust report.