The Pandemic Has Made Americans More Brand Loyal

In times of stress and uncertainty, 'familiarity breeds comfort.' But customers were more loyal to food, beverage and clothing brands than to other types. JL

Robert Klara reports in Ad Week:

Despite the social and economic upheaval of 2020—or perhaps because of it—Americans are emerging from the pandemic as more brand-loyal that perhaps any time in history. 97% of shoppers now consider themselves to be brand loyal. That’s a 7% increase from 90% level measured in 2019. “Over the last year consumers had less exposure to new brands, at least in person, as there was less in-person shopping, window shopping, and, familiarity breeds comfort." Brand loyalty ran strongest (for) items with intimate connections with lives. Food and beverage brands led, with 62%. Apparel was next in line, with 57%. Consumers were less loyal when it came to sporting goods (21%) and furniture (11%).

As the country slowly wrestles free of its Covid-19 restraints, a new study has revealed an interesting wrinkle in consumer shopping preferences: Despite the social and economic upheaval of 2020—or perhaps because of it—Americans are emerging from the pandemic as more brand-loyal that perhaps any time in history.

A new Savings.com survey of a thousand Americans reveals that a whopping 97% of shoppers now consider themselves to be brand loyal. That’s a 7% increase from 90% level measured in 2019.

Is this good news? Well, if you happen to be selling a large, established brand, yes. If you’re an upstart, well, perhaps not so much.

“We believe there are several factors at play,” Savings.com’s director of industry research Ryan McGonagill told Adweek. “First, [over the last year] consumers had less exposure to new brands, at least in person, as there was less in-person shopping, window shopping, and so on.

“Second,” he added, “familiarity breeds comfort.”

Indeed, Savings.com’s survey seems to prove a logical outgrowth of the market dynamics that were well documented throughout last year: In times of crisis, consumers tend to seek solace in things already they know and trust, including the products they buy.

For example, a Deloitte study released last summer found that, as consumers managed the stress and anxiety of being stuck at home, “comfort and familiarity with iconic brands seems to outweigh this novelty of niche brands or the low prices of private labels.”

Around the same time, a piece published by the U.S. Chamber of Commerce observed that, when it comes to brands, “in an uncertain world, shoppers gravitate toward the familiar.” It cited an increased demand for brands like Pringles and Froot Loops, largely because these brands were well known and tended to remind consumers of stabler times.

It’s only logical, then, that loyalties forged in the fires of 2020 are now, in 2021, fully baked.

The allegiances Savings.com measured were not uniformly distributed, however. Perhaps not surprisingly, brand loyalties ran strongest when it came to items that have intimate, physical connections with our lives. Food and beverage brands led the pack, with 62% of respondents saying they shopped for a particular one. Apparel was next in line, with 57% saying they were loyal to a specific label. Consumers were far less loyal when it came to categories such as sporting goods (with a 21% loyalty rate) and furniture (11%).