Consumers defy inflation, chose old brands over price - survey

 

Consumers in Kenya are going for traditional brands perceived to be of high quality over price, despite the rising cost of living. 

The latest consumer survey by market research agency, Kantar TNC shows 85 per cent of Kenyan consumers will purchase a brand based on its perceived quality, price notwithstanding.

This trend tends to defy the high cost of living coping mechanism that could otherwise see buyers save on expenditure by opting for affordable products. 

According to the survey, this trend saw brands like Jik, Colgate, Bamburi Cement, Dasani and Dettol voted among the top brands in the latest consumer ranking. 

Jawad Jaffer, Superbrands project manager said knowledgeable Kenyan consumers now prefer brands that deliver value and purpose.

Mobile money transfer service, M-Pesa retained its leadership for the fifth year in a row. 

The digital wallet owned by Safaricom Plc commands over 80 per cent of mobile money transfer business in the country.

The latest data by Communications Authority shows 36 million users have subscribed to the platform since its inception in 2007. 

"This solidifies the platform’s positioning as being integral and essential to the functioning of small and medium-sized enterprises (SMEs),'' Kantar said. 

The service industry dominated the top five list, outdoing the Fast Moving Consumer Goods (FMCG) for the first time in the series. 

Six new support services and FMCG brands made an entry into the top 20 in the 2022 insight survey for the first time. 

They include Jik, Darling, Beyond Fruits, Nescafe, St John’s Ambulance and Kenya Airways at 20th.

The Covid-19 pandemic also occasioned a shift in ranking, with healthy washing and medical brands like Jik, Dettol, Red Cross and St. Johns Ambulance replacing luxury brands, especially in the betting sector. 

The survey was conducted in the first three months of the year in Nairobi, Mombasa and Kisumu.   BY THE STAR