OMD UK: contradiction and openness now define British consumers

Britain is not staying tough; it’s getting tougher according to a ground-breaking and far reaching new study into the lives of ordinary Britons.

Nearly a third of 45-54 year-olds have lowered their aspirations, whilst younger people, aged 16-24, are the most highly stressed age group due to fears over employment, job prospects and home ownership.

OMD UK’s ‘The Future of Britain‘ project has sought the views of 2,000 people across the country to try and understand how the recession has impacted people’s lives and what this has done to their world views, behaviours and consumer habits.

“People are suffering a turning of the screw,” said Chris Worrell, Insights Director, OMD UK, as he presented the findings on Wednesday. “There is a drip, drip, drip effect to this recession that makes it very different from the crash of the 1930s.”

With tax credits down, a housing crisis and frozen pay for many, the current on-going recession has deeply impacted consumer behaviours, making them people of both ‘contradiction’ and ‘openness’, Worrell says.

“Openness is a consumer coping mechanism. People are developing support networks to help with the effects of the recession and they’re also more open than they used to be about new ideas.”

Likewise, we now live in an era of contradiction, the study finds, whereby consumers are cutting back on essentials as they cope with less disposable income, but they still insist on owning ‘must haves’ such as the latest smartphones.

“People struggle with bills, but they find money for new technology,” Worrell says, despite 18% of people who say they are struggling with gas bills buying a tablet in the last 12 months.

The report’s findings, which also show the fragmentation of Britain, the changing dynamics of behaviours and consumer reappraisal values, will have a huge impact on brands, argues Worrell.

One key insight is that people want the same things from brands, and the study suggests that they must deliver empathy, value and a reason for spend – particularly now consumers have developed frugal behaviours as a by-product of such a long recessionary period.

Examples of brands that have achieved this include Aldi, who have successfully made middle-class shoppers feel good about using the cut-price store and Krispy Kreme, who, despite the premium cost of their products, have seen revenues increase 20% throughout the recession simply by making consumers feel like they are indulging in a “well-earned” celebration during tough times.

“What is eminently clear is that in a period of change and flux there are a host of new opportunities for brands emerging,” concludes Worrell. “Innovation is key here, along with a real commitment to consumer centric insight and understanding.”

Newsline will be showcasing the some of the key findings from the report over the summer with some exclusive OMD UK opinion.