Even if prices rise after the Brexit process commences with the triggering of Article 50 next week, Brits are expected to continue to purchase from premium brands.
According to new data from the Centre for Retail Research (CRR) and Rakuten Marketing, 61 per cent of shoppers say they will not be discouraged from purchasing premium items if prices rise by up to 10 per cent.
In fact, only six per cent of Brits say they would refuse to buy the item.
However, there is a tipping point though – the rise from a 10 per cent increase to a 15 per cent price increase would make 21 per cent of shoppers switch products.
In addition, 57 per cent of consumers are not prepared to pay more for online delivery.
Meanwhile, exactly half of shoppers expect to spend the same or more on premium products post-Brexit, but 39 per cent say they will spend less on these items.
Looking to foreign-produced premium brands, 29 per cent expect there could be reduced spending, and a further 10 per cent expect a large reduction in spending on these products. Only 16 per cent expect to spend more.
Despite all this, the research also shows that attitudes to spending on premium brands over the coming months is polarised, with 37 per cent of people “very” or “quite sure” they will be better off while 40 per cent believe they will be “worse off” or “not better off”.
“Although there is a clear divide in opinion, negative attitudes about the effects of Brexit outweigh positive ones,” CRR director Professor Joshua Bamfield said.
“However, when we look at consumers‘ perception of how well off they will be in six months compared to two years‘ time, their outlook is fairly stable suggesting that a crash in consumer confidence may not come.
“Ultimately though, we could see a change in living standards as a result of Brexit and this could affect brand loyalty as well as consumer buying behaviour, and retailers must be prepared for this.”
The data was gathered after a survey of 1000 consumers across the UK.