Brand Loyalty Reigns Supreme - NPD Canada

When it Comes To Consumer Decisions, Brand Loyalty Reigns Supreme

Brand Loyalty Report Takes a Cause and Effect Look at How Loyalty Translates Into Sales

TORONTO, July 26, 2016 – When it comes to building a brand, very few traits are as important as loyalty.  According to a new research report by The NPD Group, a leading global information company, consumers are increasingly choosing to interact with and purchase products that they know and trust.

While this may seem like a logical conclusion, The NPD Brand Loyalty in Canadian Fashion report takes a cause and effect look at how strong consumer loyalty translates directly into sales when it comes to the Canadian fashion and apparel industry.

Women’s Activewear 

One good example of the impact of brand loyalty can be seen in the women’s activewear category where three-quarters of female consumers, 73 per cent, indicate they are loyal to at least one brand. These loyal consumers will spend about twice as much on a brand they are loyal to, compared with a brand that evokes little or no loyalty. Furthermore, when it comes to repurchase intent in this category, loyal consumers are about 35 per cent more likely to buy again and again, making loyalty important for both growth and sustainability.

Men’s Denim

Denim is another category that illustrates the positive correlation between brand loyalty and sales. More than 80 per cent of men claim to be loyal when it comes to shopping for a new pair of jeans. Men purchased on average less than two different denim brands over a 12-month period and tended to consider themselves loyal to just one brand. Again, repurchase intent was 40 per cent more for loyal consumers, suggesting that denim purchases are highly motivated by loyalty.

Men’s Underwear

In the men’s underwear category, the top three brands collectively capture more than 40 per cent of the market. And while many of us may not think twice about the brand in our pants, research shows that if a man is loyal to a particular underwear brand, he will spend three times as much, on average.

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