News

Brands Under Pressure: Consumers Are Rethinking Loyalty

According to the latest research from the EY Future Consumer Index, up to 36% of consumers no longer consider brand when choosing a product, and in Spain, 35% believe brands are irrelevant.

📉 Value Over Name

  • 66% of Spaniards prioritize price when buying clothing.
  • 58% do the same in the cosmetics category.

At the same time, 78% have noticed shrinkflation — a reduction in product size — and 77% have changed their shopping habits due to rising prices.

Marketing "enhancements" are met with skepticism:

42% see them as cost-cutting measures rather than added value.

🛒 Private Labels as the New Normal

What was once seen as a "budget alternative" is now a conscious choice.

  • 67% of global consumers are satisfied with private label products.
  • 36% have no intention of returning to traditional brands.
  • In Spain, 46% already opt for distributor brands.

Retailers are actively promoting their own products:

64% of shoppers notice more private label items, especially placed in “premium” eye-level positions.

🔁 The Switching Generation: A Threat and an Opportunity

  • 58% globally, and 68% in Spain, remain loyal to favorite brands but are open to trying new ones.

These "switching consumers" are impulsive and respond well to deals, samples, and promotions.

Most prone to switching: younger generations (Gen Z and millennials) and high-frequency categories like food, cosmetics, and personal care.

🚀 What Can Bring Loyalty Back?

To remain relevant, brands must act: listen to consumers, focus on product substance, communicate simply, and act honestly.

  • 48% of Spaniards would return to a brand for better taste or quality.
  • Categories that invest heavily in R&D (such as cosmetics) retain consumer trust.

A brand must “show up” in recommendations, filters, and platforms — this is the new shelf space.