Nielsen study: brand loyalty of german consumers declines

A good one in three Germans (32 percent) love trying out new brands and products. Know brand loyalty for everyday goods but only 13 percent of Germans.

A similar result can also be seen in the European average: around twelve percent of average Europeans say they shop in supermarkets and co. Rarely reach for new things, while almost 33 percent like to try new brands and products in goods of daily use. Globally, as many as 42 percent of consumers say so.

That's according to the latest consumer brand loyalty study from Nielsen, a global performance management company that provides information and insights on consumer behavior. The study maps the assessment of consumers in 64 countries on their loyalty to brands and products, on the influence of brands on their purchasing decisions, and on the importance of brands in specific product categories.

"Germans are curious consumers. We see consumers enjoying trying out products and brands and being inspired in-store. The new factor is attractive and is increasingly becoming a brand itself," says Fred Hogen, retail expert at Nielsen Germany.

Germans buy different brands and products today than they did five years ago

Looking back over the past five years, only just over one in three consumers in Germany has remained loyal to their brands and products when it comes to everyday goods. Around 34 percent of Germans say that they still end up with the same things in their shopping carts as they did five years ago. 38 percent, on the other hand, say they are more open to new products and brands today than they were five years ago. This difference is greater on average in Europe. Only around 28 percent still reach for the same products on supermarket shelves as they did five years ago, and a good 40 percent now enjoy trying out new things.

"Germans are less and less likely to make long-term commitments to their brands and products, or in other words: when it comes to choosing their products and brands, more and more consumers are no longer creatures of habit. For many, discovering new products has become part of the shopping experience," says Fred Hogen. "Brand switching itself is becoming a shopping experience that more and more consumers are looking for."

Two groups of brand-loyal consumers

A large proportion of German consumers belong to the group of active explorers (38 percent). Nielsen calls them "brand discoverers. They go on a discovery tour every time they go shopping and focus on variety in the shopping cart. The Nielsen data also shows that brand loyalty is a generational thing. Globally, Millennials are about 1.3 times more open to trying new products than the rest of the population.

The second group of "brand watchers" includes around 24 percent of consumers in this country. They like to store as usual and often remain loyal to brands and products. Nevertheless, they observe novelties and other things with interest and curiosity.

Reasons for switching brands

How loyal Germans are to brands and products in the household and food sector is determined above all by the price-performance ratio. Almost 68 percent of Germans cite this point as the most frequent reason for switching brands and products for everyday goods. In the European comparison even 74 per cent say that. For 63 percent of German consumers, reduced prices or special offers also play a decisive role in the decision to try out new things. For more than half of consumers (55 percent), better quality is the most common reason for switching brands or products.

Social responsibility is the most common reason for switching to a particular brand or product for a good third (35 percent). The fact that the brand and product enjoy a high level of trust plays a role in brand and product switching for around 42 percent.

Willingness to switch varies by product

It is also striking that the willingness to switch is not the same for all products. When it comes to buying coffee and tea, the brand name is particularly important to Germans. Here, 71 percent say they choose between one or two brands when buying coffee and tea. brands are important to them. Second place is taken by skin care (69.4 percent) and third place by shampoo and conditioner (69.2 percent). In a European comparison, skin care products (73 percent) are followed by coffee and tea (77 percent) and shampoo and conditioner (75 percent).

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