Theret has been much genuine and anecdotal evidence of buyers, especially consumers, switching their buying habits during the recession. Motivation may have been pragmatic or emotional, or some combination of the two. But it poses the question about what will happen when the recession is over? Well buyers simply return to their premium or first-choice brands, or will they have developed loyalty to their new lower-budget brands?
The challenge for the premium brands who have currently lost share will be: ‘What must we do to attract those customers back?’
For the budget brands: ‘What can we do now to secure and build loyalty amongst those defectors from premium brands?’