Surprising brand winners from the coronavirus crisis

The winners and losers for our trust during the coronavirus crisis aren’t who you might think they would be.

Despite potentially higher prices for locally made products, 37 per cent of respondents said they would now preference buying Australian brands. Picture: AP

People are putting more faith in the government and supermarkets, while banks have failed to capitalise on any goodwill brand boost from the coronavirus crisis.

The latest Australian Consumer Sentiment Report from the Boston Consulting Group showed trust in healthcare providers grew 25 per cent amid the crisis, while confidence in supermarkets and the federal government has been boosted 18 per cent, with state governments following closely behind.

BCG managing director and partner Monica Wegner said the report showed clear shifts in how Australians were spending their money and where they were placing their trust during the COVID-19 crisis.

“The BCG report shows consumers are carefully watching how Australian institutions are responding to the crisis and the initiatives they’re providing, to determine how much they trust them,” said Ms Wegner.

“That’s why in these rapidly changing times, creating and maintaining consumer trust should be a key focus for organisations to ensure they maintain their relationship with customers into the future.”

Australian Prime Minister Scott Morrison. Picture: Getty Images

The shift comes as supermarkets have faced near-unprecedented demand for their goods.

Australian Bureau of Statistics figures this week showed overall supermarket sales have soared 39 per cent in March.

BCG’s survey revealed a surge in the number of Australians who said they would buy local, with a 56 per cent increase from 2016.

Despite potentially higher prices for locally made products, 37 per cent of respondents said they would now preference buying Australian brands.

The report found 47 per cent of Australians surveyed had cut spending on luxury items.

Expectations of recession were held by 84 per cent of the survey, with two in five already feeling financially insecure.