After Brexit: Rethinking the structure of the UK economy and its branding strategies

Abstract

Brexit is currently making the economic climate uncertain. It will have an impact on the economic health of the UK economy and its products may suffer as consequence. It presents conditions for engendering both the positive and negative features of a falling currency. Associated with Brexit is the possibility of negative customer brand perceptions, a result of the UK country of origin effect. This raises the issue of considering alternative strategic routes to growth.

Reassuringly British: consumer engagement with domestic products and brands

“…However, the inclusion of implicit and explicit British provenance information on product labelling and packaging design is evident, with the practice becoming particularly prominent during the Brexit debate (Ardley, 2018) and the COVID-19 pandemic (Bentall et al, 2021). Even before these periods, a renewed consumer interest in the Made in Britain label was observed and considered a prominent marketing strategy (Comunian and England, 2018), with domestic retailers launching their own British-made product ranges.…”

“…Even before these periods, a renewed consumer interest in the Made in Britain label was observed and considered a prominent marketing strategy (Comunian and England, 2018), with domestic retailers launching their own British-made product ranges. Within the last few decades, British brands generally have become synonymous with creativity, freedom and rebelliousness, supported by a loyal consumer base (Ardley, 2018). Groves (2001) found that a British mark shares positive synonymous product attributes such as authenticity and quality within the FMCG sector particularly, with Benton et al (2017) reporting an increase in domestic consumers preferring to buy British.…”

“…The label's influence for non-perishable FMCG goods remains inconclusive due to limited investigations, although an association with reliability has been identified (Leonidou et al, 1999). Changes within the socio-political or economic landscape resulting in a perceived consumer appetite to support local products may consist of another motivator, although manufacturers showcasing their provenance during this time may inadvertently influence brand image, particularly during heightened political tension, as national imageries and symbols become synonymous with a political affiliation (Ardley, 2018).…”

“…However, the inclusion of implicit and explicit British provenance information on product labelling and packaging design is evident, with the practice becoming particularly prominent during the Brexit debate (Ardley, 2018) and the COVID-19 pandemic (Bentall et al. , 2021).…”

“…However, it is documented that socio-political or socio-economic changes can affect customer engagement with the COO label (Coleman et al, 2022;Dyer, 2017), as new and different extrinsic product attributes become prioritised and favoured in response to external changes, beliefs and pressures related to, or experienced within, the nation state. Recent examples include shifts within the socio-political landscape resulting from the United Kingdom (UK) leaving the European Union (EU) and the COVID-19 pandemic, leading to the return of psycho-political forces impacting retail, such as consumer ethnocentrism, local identity and global animosity, changing consumer behaviour as the product attribute of origin reinforces the importance of COO information on grocery labels influencing brand perceptions and purchasing decisions (Naeem, 2021;Ardley, 2018;Steenkamp, 2017). For example, consumption changes within the UK associated within the transition period found a 6% increase in demand for UK FMCG products and a 13% decrease for EU FMCG products (Nardotto and Sequeira, 2021).…”