UK consumers prepared to pay more for fashion from small firms – report

British consumers appear to have a soft spot for supporting small businesses. So much so, they’re willing to pay up to £11 more on average to buy goods from them rather than from large chains. And even more at niche fashion brands.

Overall, 21% of Britons prefer shopping with smaller businesses and 52% say this is primarily motivated by the appeal of unique and personalised products, according to a survey by Capital On Tap.

Other reasons they shop small include better customer service and quality of products (38%) and understanding the impact of their spending on the business owner (42%).

Also, 81% of UK consumers say they consider shopping with small businesses for Christmas.

The desire to support niche fashion retail is even more pronounced, to the tune of £17.62 extra, and Millennials lead the way, willing to spend £23 more.

The upspend for jewellery’s also impressive, at £20.58. Meanwhile, under the heading of ‘toiletries’ they’re generally willing to spend an additional £8.61.

Millennials are the overall heroes of the survey and are the most willing to spend extra on products from small businesses, with an average outlay of £15.33, followed by Gen Z at £14.69.

It turns out Brighton residents are the most inclined to shop small, with 68% doing so to support the local economy. Consumers in Portsmouth aren’t quite so supportive with just 7% of consumers preferring to shop small.

Kamilla Fernandes-Pickett at Capital on Tap said: “To build trust with customers and create a sense of community, small businesses should focus on three key strategies: establish an engaging online presence to keep followers informed, participate in local events to connect face-to-face, and offer personalised products or services to give customers a unique, individual experience.”