Brand disloyalty 'the new normal' for Singapore consumers: Nielsen survey

The findings come with the rise in the accessibility and assortment of products and services across online and in-store channels.
The findings come with the rise in the accessibility and assortment of products and services across online and in-store channels.PHOTO: ST FILE

SINGAPORE - Brand disloyalty - or brand switching - is the new norm for Singapore consumers, said a new Nielsen report, which found nearly half of those surveyed say they are more likely to try new brands compared to five years ago.

This comes with the rise in the accessibility and assortment of products and services across online and in-store channels, said the global data analytics company.

Its survey, released on Tuesday, also found that three in five or 61 per cent of Singapore consumers saying that while they prefer to stick with their favourite brands of products, they can be persuaded to experiment with others. Meanwhile, 28 per cent also said they "love trying new things".

"Value for money" was found to be the Singaporeans' top reason for brand-switching behaviour at 78 per cent, followed by price reductions or promotions at 73 per cent.

Singaporean respondents also singled out other reasons like utility, ease of use and convenience at 66 per cent as key factors which influence their brand choices. According to Nielsen, Singaporeans also rely heavily on recommendations from family and friends.

In terms of top categories which see the most brand switching, chocolates and biscuits came out on top with 52 per cent, followed by dairy products like milk, cheese, yogurt and butter at 50 per cent.

Next is shampoo and conditioner at 49 per cent, coffee or tea at 48 per cent and skincare products at 47 per cent, which includes body lotion, moisturisers and body wash.

 
 

Garick Kea, head of consumer insights for Nielsen Singapore, said: "Increasingly, familiarity does breed contempt, as consumers continually seek for convenience, niche products and personalised experiences."

He added sourcing for cheap deals and best buys has become an integral part of everyday life, with the bar being raised higher for brands to connect and engage with their audiences.

Businesses looking to encourage brand loyalty need to prioritise convenience and support peer-to-peer advocacy to help serve individual consumer needs, while conveying their brand's purpose and relevance, Mr Kea added.

Globally, brand disloyalty levels are on the rise with consumers, with only 8 per cent considering themselves as "committed loyalists" when it comes to their favourite brands, the Nielsen report said. This follows rising income levels in developing markets, which lower the risks associated with trying new products.