The recession is finally over. 2013 has seen many encouraging signs of increasing consumer confidence and positive economic growth. UK businesses have been told to look forward to a bumper Christmas. But don’t expect consumers to permanently return to their pre-recessionary spending habits any time soon. There is a new normal out there, many consumers have traded down, some of them have loved it and brands that are quick to realise this will run effective campaigns that outflank their rivals. Opinium Research

1. Meet the post recession consumer
Date: October 2013

2. Quick snap-shot: The post recession consumer
The Good
The Bad
Loads of good news to
talk about and signs of
recovery
Consumer confidence
at an all time high
Decreasing levels of
financial based fears
Unsatisfied with bigbusiness
1/3rd say they trust
companies less than
they did last year
Spending intention
levels completely flat
They have traded down and
they like it!
The opportunity or threat?
2

3. The Good News

4. Economic Headlines
August
ed
ts upp
asts upp ed
r ec
f or e c as
ur growth fo nce hiits fourrowth
UK g
UK
ce h ts fo
nfiide n
f de
n as co n h gh
gaiin as c o ar hiigh
a ga
a
ye ar
ye
CBI says UK economy to
CBI says UK economy to
grow by 1.2% in 2013
grow by 1.2% in 2013
Surgiing e
Surg ng ex
xports boo
po
st U
econom rts boost UK
economic
ic recovery K
recovery
UK inflation expected to fall
to 2.7%
Output rose 0.7 per cent
Output rose 0.7 per cent
between April and June!
between April and June!
'firing on all
Economy
ts
ys economis
cylinders' sa
4

5. Economic Headlines
September so far
Briittain
Br ain'
's reco
Exper s recovery ov
v
Experts
ts doub ery overttakiin
er
doublle
g r va
e growt ak ng riivalls:
growth
h predi
for tthi
predicti s:
for his
ctions
s year.
ons
year.
Bank upgrades forecast
Bank upgrades forecast
for economy
for economy
UK inflation rate falls to 2.7%
in August
UK econ
UK econo
omy iis tur
my s tu n
ng corne
G e or g e
George Os rniing corner,,
r
Osborne s
borne says
ay s
Consumer confidence on the rise!
Consumer confidence on the rise!
ast'
r Than Forec
tte
Recovery 'Be
5

6. Positive signals - finally
•
There is a buoyant mood!
•
Consumers encouraged by signs of progress in the UK economy
•
This improving sentiment continues to be driven by growing confidence in the current economic situation
Sentiment
Consumer
king Group
ints in July
Lloyds Ban
h of 114 po
s a new hig
dex reache
In
Source: http://www.lloydsbankinggroup.com/media1/economic_insight/spending_power_report_page.asp
6

7. A reduction in financial fears
•
Fear is a major driver of consumer behaviour
•
The Opinium Consumer Hopes, Fears and Spending Intentions Tracker asks consumers to indicate their main
hopes and fears and then tries to understand their spending intentions across a number of areas
“What are your main fears for the next six months?”
•
Our graph below shows how UK consumers are becoming less fearful across six financially-based themes as we
move further away from recession:
Source: Opinium Hopes & Fears Report: 2,000 UK consumers 2013
7

8. Trust is still relatively low but some positive signals
•
“Please list the companies you say you would trust?”
The UK’s most trusted companies*
1 M&S
11 Waitrose
1 John Lewis
12 Nationwide / Nationwide Building Society
3 Amazon
12 Apple
4 Co-op / Co-op Bank
14 Sony
5 Sainsbury's
15 BT
6 Tesco
16 Morrison's
7 Virgin
16 Argos
8 ASDA
18 Debenhams
9 Boots
18 Philips
10 Samsung
20 Small / local / independent companies
Source: Lansons/Opinium annual Trust Survey
8

9. The Bad News

10. We should still be concerned about trust
•
Despite all this good news - trust levels are fairly low
•
Consumers are still struggling to trust big business
•
In the 2013 Opinium Trust Survey, run with Lansons Communications:
A third of UK adults said they trust companies less than they did last year
Source: Lansons/Opinium annual Trust Survey
10

11. Big Business in 2013: Improvement but still huge issues
How satisfied or unsatisfied are you with how big business capitalism operates in Britain at the moment?
Why do you say you are dissatisfied with how big business capitalism operates in Britain at the moment?
GREED
TAX AVOIDANCE
CUSTOMER SERVICE
CORRUPTION/DISHONESTY
UNFAIR SOCIETY
SOCIAL RESPONSIBILITY
BONUSES
POWER
PAY
MANAGEMENT
FOREIGN OWNERSHIP
SHAREHOLDERS ACCOUNTABILITY
ENVIRONMENT
GOVERNMENT
Source: Lansons/Opinium annual Trust Survey
11

12. Despite the good news – spending intentions are flat
•
Our research shows no significant changes in spending intentions across the major categories we track
•
In fact the 2013 data is almost a mirror image of our 2011 and 2012 surveys
•
Which means that although economic fears are subsiding, this is not having an immediate effect on spending
intentions
No change
Holidays
No change
Leisure & Entertainment
No change
Eating & Drinking
No change
Non-essentials
Source: Opinium Hopes & Fears Report: 2,000 UK consumers 2013
12

13. The Opportunities or Threats for Brands

14. The Recession: Changing lifestyles
•
During the course of the recession UK consumers across all socio economic groups planned to and eventually
did change their lifestyles:
o
Reducing or postponing their spending
o
Trading down
o
Making more use of the internet to compare and select the best offers
o
Often compromising on quality to reduce their spending
“We’ve significantly reduced our
expenses as a family. We no longer eat
out and have not taken a holiday in four
years.”
“On the high street I
like to use my
Smartphone to check if
I am actually getting
the best deal.”
“ I no longer buy
branded
household
goods.”
“I use cheaper brands
and shop at cheaper
stores and
supermarkets.”
“I buy my fresh produce
from Waitrose and
everything else from
ASDA.”
14
Source: Opinium Consumer Focus Groups

15. Getting a kick out of trading down
•
Pleasantly surprised by what they have found on their way down the ‘frugal ladder’; some are quite proud of
their achievements
•
Different groups of people have experienced different recessions, but there is evidence that even those on
higher incomes have traded down on certain products, as finding a deal becomes the new ‘splash-out’
experience:
“Not sure what all the fuss was
about. Higher priced items are
usually overrated anyway.”
“I used to show off my
expensive purchases,
now I'm almost
ashamed to spend
more than I should.”
“My job situation
has improved but I
don’t think we’ll
change back to
the way we were.”
“ If I don’t feel like I got a deal
then I’m not actually that keen on
buying.”
“ It’s become un-cool to
spend too much so me and
my friends always seem to
be competing over who can
get more for less.”
15
Source: Opinium Consumer Focus Groups

16. Getting a kick out of trading down
*
37%
UK consumers that traded down to lower price brands
said that “they performed better than expected”
59%
60%
72%
75%
79%
*
I no longer prefer higher priced items
Higher priced items are not worth the money
*
*
I don't anticipate returning to buying higher
priced items in the near future
*
I think I will stick with lower priced items even
if I am able to afford more expensive ones
*
In general I found the lower priced items were
just as good as the higher priced items
Source: *Opinium Consumer Omnibus: 2,000 UK consumers: 13th– 16th September 2013
16

17. Parting Thoughts
•
The landscape has shifted. The new frugal consumer is unlikely to go back to spending beyond his or her means
on discretionary purchases. It’s time to reassess who your customer segments are and how they behave. Focus
on what customers want and need now; don’t assume things will ever get back to ‘normal’.
•
Price wars will only get you so far. Are you trustworthy? Are you transparently honest? Environmentally
friendly? Do you provide an authentic experience? Do you provide value? Revisit the proposition you offer your
customers – is it fit for purpose?
•
Your website is a crucial explanation of your brand and proposition. You know what you’re trying to say, but
does your customer?
•
It’s time to get serious about service. One bad experience, one tweet, could cause a stampede. Are you on top
of your customer service as well as your social media channels?
•
Are you using your existing customer data to uncover hidden competitive advantages unavailable to your
competitors? If not, why not?
17

18. Game changing… some industries have responded:
•
Question: Which organisations have provided you with the best customer service during the last 12
months. Please select one or more categories and type in the name of the organisation(s) that provided
you with the good customer service and use the boxes to explain the reasons for your choice(s):
18
Source: Opinium Consumer Omnibus: 2,000 UK consumers

19. Thank you!
jamesendersby@opinium.co.uk
@opiniumresearch & @jamesenders

20. An Introduction to Opinium Research
International research specialists...

21. Why partner with Opinium
We help organsiations get to grips with the world in which their brand operates, by ensuring we develop the right
approach, methodology and questions to deliver robust insight, targeted recommendations, and address specific
business challenges
Our unique offering is centred around three key areas:
Our People
A highly experienced and enthusiastic team, with an intimate
way of working and senior management involvement
throughout, inducing confidence and a trusted partnership
from day one
Our Insight
Tailored techniques and outputs to deliver precise
recommendations to meet your business needs, both in the
UK and across the globe
Our way of working
High levels of responsiveness and quick turn around times,
driving efficiencies throughout, whilst maintaining the
highest quality standards
21

22. Our research offering
Our custom research offering encompasses a wide range of sectors from financial services to media, FMCG and
telecoms, supported by a full suite of research practice areas:
•
Specialists in Qualitative and Quantitative research
•
A tailored approach offering full research
consultancy to meet your specific needs
•
A wide range of research techniques to reach your
target audience (F2F, telephone, online, mobile,
dedicated Consumer and B2B panels)
•
Highly experienced in managing multi- country and
global research programmes
•
Tailored deliverables to suit your needs and
incorporate your business issues
•
Dedicated support to embed your research within
the business and ensure maximum engagement
22

23. Our international expertise
•
Expert ability to conduct complex multi-country market research studies ensuring consistent quality
throughout
•
Diverse network of partner agencies around the globe ensuring local market knowledge is utilised fully to
generate actionable learning's
•
Access to: Global Consumer & B2B Panels in 65 countries
23

24. For further information please contact:
James Endersby
Managing Director
Direct: +44 (0)207 566 3197
Email: jamesendersby@opinium.co.uk
Alexa Nightingale
Research Manager
Direct: +44 (0)207 566 7435
Email: alexanightingale@opinium.co.uk