Three months on from Brexit: What now for brands?

23 september 2016
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Brexit

Many brands are still in a state of flux post-Brexit and while there are early signs of resilience marketers will need to be flexible to deal with ongoing uncertainty.

Three months on from the UK’s vote on 23 June to leave the European Union, the business world remains in a state of limbo. The Government has yet to activate Article 50 – the legal mechanism that would facilitate Brexit – and has failed to set a formal timetable for negotiations with the EU. Instead, politicians continue to argue over exactly what the settlement should entail or whether the referendum result is legally binding.

In this context, marketers are left with a contradictory set of factors to consider. The ‘Brexitgeddon’ economic catastrophe that many analysts predicted has so far failed to materialise, with early indicators showing resilience and even growth in some areas.

A Confederation of British Industry survey last month showed exports increasing to their highest level in two years, as manufacturers took advantage of the falling pound to boost their output. Consumer confidence also bounced back in the GfK index for August, with shoppers’ propensity to make major purchases rising by nine points to +7. British supermarkets, meanwhile, recorded sales growth of 0.3% in the 12 weeks to 14 August – their best performance since March – according to Kantar Worldpanel.

But despite these positive signs there are also deep-rooted problems with productivity, low wage levels and the possibility of high inflation, following the drop in sterling. It is too early to say whether the initial post-Brexit resilience will last, and plenty of large companies are adjusting their strategies to deal with the ongoing uncertainty.

Bron en volledig artikel: Marketingweek

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