1. UK brands decline in value
More UK brands have seen their value decline rather than grow over the past year, according to Kantar’s latest BrandZ ranking of the UK’s top 75 brands. Some 33 brands increased their value (by an average of 13%) in 2019, while 38 brands declined in value (by an average of 12%) and one brand saw no change.
This means there has been an overall year-on-year decline in value of 3% in the UK, well behind the growth rates of both the global economy, which is up 3.7%, and BrandZ’s Top 100 global brands, which increased 7%.
Vodafone remains the UK’s most valuable brand, worth $26.5bn, followed by HSBC on $23.2bn and Shell on $20.7bn.
In terms of the fastest risers, Deliveroo comes out on top. Over the past 12 months the food delivery company has increased its value by 54% to $1.4bn, putting it at number 50 in the ranking, while Costa Coffee’s value is up 48% to $1.5bn, no doubt boosted by Coca-Cola’s acquisition of the brand at the beginning of the year.
2. Brand safety fears prevent programmatic investment
As the demand for premium inventory rises, so too have concerns around brand safety. A third (34%) of advertisers now cite brand safety as a barrier to programmatic investment, up from 24% in 2018.
Fraud also remains an issue for advertisers, with 31% suggesting it’s of concern, while 38% cite supply chain transparency as another barrier to investment.
By contrast, hiring people with the right skillset in programmatic has decreased as a barrier for advertisers, dropping from 32% last year to 24% in 2019.
Source: IAB Europe
3. The buying power of new parents
Parents will spend an average of £11,498 during the first year of a child’s life, while the average spend in the UK on baby products during pregnancy is between £1,000 and £2,000.
One third of new mums will happily pay a higher price for personalised products and more than half will turn to social media for recommendations. Another 56% are influenced by Facebook parenting groups when it comes to buying products for their baby.
Parents’ desire to buy from brands they recognise almost doubles after the birth of their first child, with 47% opting for trusted, recommended and reliable brands post-pregnancy compared to 28% ahead of the birth.
Meanwhile, more than half of women believe niche brands provide a better offer than bigger brands. And 52% will purchase from one brand over another if they believe its values align with their own.
Source: Emma’s Diary
4. High street store closures hit record high
Some 2,868 stores closed on Britain’s top 500 high streets in the first half of the year. By contrast, 1,634 stores opened leading to a net decline of 1,234 stores. This compares to a net decline of 1,123 during the same period last year, making it the highest since the survey began in 2010.
This means there were almost twice as many store closures (16 per day) as there were openings (nine per day) during the first half of 2019.
On a sector-by-sector basis, only 15 out of 96 sectors showed a net growth, and only two categories grew by double digits. Takeaways saw a net increase of 26 outlets, while sports and health clubs had a net increase of 17.
The biggest net declines were seen among fashion retailers (-118), restaurants (-103) and estate agents (-100).
Source: PwC and Local Data Company
5. Majority of Brits would purchase upcycled garments
Some 90% of Brits say they would be willing to purchase a product clearly labelled as ‘upcycled’ or ‘100% recyclable’.
However, only 43% would be willing to pay a premium. This figure climbs to 51% for London-based shoppers.
Consumers are putting more pressure on companies to be transparent about their sustainability, with 62% suggesting they would stop purchasing a particular brand if it was found to be detrimental to the environment.
And while one fifth (20%) of consumers are committed to purchasing only sustainable products, product information detailing the sustainability and environmental impact would make 69% of Brits more likely to purchase.