Study: “Half of all consumers don’t have a favorite brand”

Half of all consumers don’t have a favorite brand. Nevertheless, brands remain an important point of reference for them in a global environment of uncertainty and distrust.

In the last five years, trust in domestic companies has increased for 43.1 percent of those surveyed; an increase of 28.6 percent, according to the current study “Brand Connection, The Age of Meaningful Brands” by the consulting firm Deloitte. Trust in small niche brands grew by 29.2 percent for 39 percent of those surveyed. Large brands also increased by 20.1 percent and now enjoy the trust of 36.9 percent of those surveyed.

Younger people have greater trust

Younger consumers are more optimistic. They show a greater willingness to trust brands. This applies to both more specialized and large brands. Trust in niche brands is now at 51 percent, compared to 48.1 percent five years ago. For major brands, trust rose from 46.6 percent to 58.2 percent today.

“In recent years, brands have been able to consolidate their position. Growth has been stronger for smaller brands than for larger ones. This strengthening shows that consumers increasingly value companies with clear identities, authentic stories and direct relationships,” commented Andrea Laurenza, Consumer Industry Leader at Deloitte Central Mediterranean, when presenting the study results.

“The phenomenon of ‘brand love’ is still relevant. However, there are a few factors to observe: 45.7 percent of respondents do not feel connected to any brand and the propensity to switch brands is high. This is a sign that loyalty can no longer be taken for granted. Brand relevance is not a static attribute, but an asset that must be continuously maintained,” explained Laurenza.

Brands still bring dreams to life for more than half

For 60 percent of those surveyed, a brand still stands for quality and reliability. It serves as a guide for quick and safe decisions, which 52.3 percent confirm. Furthermore, an aspirational dimension remains that arouses imagination and desire. Consumers recognize that brands can still inspire dreams (54.8 percent). Frequent use and integration into everyday life create a deeper emotional connection (52.1 percent). This makes the brand a familiar and important part of everyday life.

Practicality, authenticity and quality

Brand loyalty means practical value in everyday life for 62 percent of those surveyed. For 57.3 percent, the emotional resonance is the priority. It creates a feeling of community and belonging (55.8 percent), conveys shared values ​​(55.1 percent) and enables new discoveries (51.5 percent).

The most important factor for retention is relevance in daily life. Consumers value brands that simplify everyday life (63.8 percent), guarantee quality (63.6 percent) and show authenticity and loyalty to their values ​​(62.2 percent).

Particularly in Europe, the connection to brands is predominantly functional and pragmatic. The decisive factors here are everyday relevance (71.1 percent), authenticity (68.4 percent), quality (67.7 percent) and reliability (65.5 percent).

Emotions inspire the United Arab Emirates, China and the USA

For 60 percent of those surveyed, favorite brands are associated with fond memories. In terms of emotional resonance, the most popular brands are those that evoke fond memories (60.5 percent). They are also intended to entertain (58.4 percent) and contribute to emotional well-being and health (56.9 percent). The emotional component is particularly important in the United Arab Emirates (77.7 percent), China (66.3 percent) and the USA (66.1 percent). There the brand becomes an integral part of the individual and collective identity. In Japan, too, the emotional level proves to be the most important lever, although the answers there are generally more reserved. Here a brand is valued for its ability to discreetly accompany life’s moments and guarantee reliability.

Brands as an identity symbol

For 56.3 percent, the chosen brand is a “reflection of values”. Consumers value brands that actively listen to their customers (60.6 percent). They also like to feel valued and unique (56 percent). This element, together with the emotional component, is particularly relevant for young people between the ages of 18 and 34 (58.5 percent). For them, the brand is also a means of social belonging and inclusion in a reference group. The bond becomes stronger when the brand is perceived as authentic and consistent. It also becomes stronger when it becomes a reflection of consumers’ values ​​(56.3 percent) and helps them express their personality and principles (54 percent). The relationship intensifies when the brand evokes pride when used (53.5 percent) and thus creates recognition that creates identity.

The role of staff remains crucial in strengthening the bond between brand and consumer. Customers are looking for competence, empathy and support. This is particularly true in markets where human contact still makes the difference, such as the US (30.6 percent), Italy (29.5 percent) and the UK (28.8 percent). In the United Arab Emirates, however, accessibility and speed are the basis for building a bond.

In Europe, great emphasis is also placed on fast payments, deliveries and returns processes. This is particularly true in the areas of fashion and luxury (33.2 percent) and food and beverages (28.9 percent). Here, consumers see a smooth “last mile” process as an important indicator of brand quality. On a generational level, those over 55 seek reassuring human interactions. Younger people between the ages of 18 and 34, on the other hand, prefer easy payments and smooth delivery and refund processes.

Customer loyalty and the digital world

Easy digital access to products and services is the most important factor (44 percent) across all industries and most regions. The US and UK lead this need. There are peaks in the areas of food and beverages (USA 52.9 percent; UK 55.4 percent) and tourism (USA 53.3 percent; UK 61.3 percent).

Compared to Europe (25.9 percent), Asia (32 percent) shows a stronger inclination towards innovative and experience-oriented technologies. In these countries, gamification and the use of augmented reality are more important. This is because consumers, especially younger ones, view shopping as entertainment. They are used to digital ecosystems that integrate gaming, social interaction and purchasing. Finally, the United Arab Emirates (29.3 percent) and China (30.6 percent) also show greater interest in chatbots, AI tools and voice assistants.

On digital platforms such as social media or the metaverse, exclusive promotions or interactive experiences are considered the most important aspects for strengthening brand loyalty. This was stated by 60 percent and 57 percent of consumers respectively. Social commerce is more important in Europe, especially in France (57.6 percent) and Italy (56.6 percent). More than half of customers there expect to be able to buy products via social media.

Storytelling and emotional content are most valued in Asia, particularly in Japan (52 percent) and China (49.4 percent). Communication via influencers is particularly relevant for young people – 40 percent of 18 to 24 year olds and 42 percent of 25 to 34 year olds. It is of central importance in the United Arab Emirates (47.3 percent), China (47.3 percent) and the USA (42.2 percent), while it plays a smaller role in Europe (28 percent).

Honest communication and clear decisions

“Being relevant for a brand means having an authentic and meaningful place in people’s lives. It must be in tune with the values, needs and emotions of its target audience. Relevance comes from a sense of belonging and the idea that the brand ‘understands’ something about us – a way of life, a desire, a way of seeing the world,” emphasized Laurenza.

“Authenticity, i.e. the ability to remain true to one’s own identity even in changing conditions, creates trust and respect. These are two fundamental ingredients for long-term success. A brand achieves true relevance when it not only sells, but also participates in cultural discourse. It must become part of the collective imagination or contribute in a subtle way to changing perspectives, habits or feelings.

Because behind every brand there are people who give it warmth, empathy and vulnerability. A brand that admits its mistakes, communicates honestly and makes clear, even unpopular, decisions remains credible,” Laurenza concluded.

The Deloitte study “Brand Connection, The Age of Meaningful Brands” surveyed more than 7,000 consumers in seven countries, including Italy, France, Great Britain, USA, China, Japan and the United Arab Emirates. The study was presented last Tuesday in Milan. In attendance were Toni Belloni, President of LVMH Italy; Lorenzo Bertelli, Chief Marketing Officer and Head of Corporate Social Responsibility at Prada Group; Marco De Benedetti, Carlyle Chairman Italy; and Altagamma CEO Stefania Lazzaroni.