Bunnings secures second spot as the most trusted brand; Optus stays last
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Where do you place your trust when you're shopping? Do you have a preferred retailer that has earned your loyalty and confidence over the years?
Whatever your choices are, they’re sure to have been reflected in a recent report by Roy Morgan.
In a surprising turn of events, Bunnings, the popular hardware store, has broken the 'supermarket duopoly' on Roy Morgan’s Trusted Brand list, surpassing Coles to secure the second spot.
Meanwhile, telecommunications giant Optus continues to languish at the bottom, retaining its unenviable title as Australia’s most distrusted brand.
Before the pandemic, Bunnings was the most trusted brand, according to Roy Morgan, holding the top spot until May 2020. However, it was overtaken by Woolworths, which has maintained its position at the top since then.
Over the past year (12 months to September 2023), there has been a disproportionate growth in brand distrust, as noted by Roy Morgan CEO Michelle Levine.
'As cost-of-living pressures deepen, this trend only gets worse as much of corporate Australia, from banks and airlines to supermarkets and utilities, are viewed by some as greedy and profiteering; Australians feel their wallets are shrinking while companies and executives are getting richer,' she said.
Despite this trend, Bunnings has significantly recovered, showing the largest absolute improvement in trust since October 2022.
The brand's reputation has contributed to its increased trust among Australians, with many claiming that the store does ‘what they say’, ‘the staff are friendly and helpful’, and ‘good price and people who know their jobs’.
Earlier this year, Bunnings won Roy Morgan’s Trusted Brand Awards in the retail category, while Woolworths won the supermarket category.
‘Bunnings has harnessed many of the foundational pillars of a trusted brand, including great customer service, communicating what it stands for and delivering, being an active part of the community, solving customer’s problems and expertise and product knowledge,’ Levine said.
‘The focus Bunnings puts on delivering great customer service matched with excellent product knowledge and a huge range of hardware items at competitive prices are key factors in the soaring levels of trust for the company over the last year.’
The trust in Bunnings' brand was strongest among people aged 35 and above, who are most likely to be homeowners or paying off a home.
Levine suggested that these older demographics, who are most likely to invest in home ownership and potential home renovations, have maintained their spending power despite the cost of living pressures.
‘As many Australians face rising cost of living pressures driven by high inflation and a record-setting series of interest rate increases, the reputation Bunnings has built over many years is paying off,’ she commented.
'Many other prominent retailers are dealing with perceptions that they are 'price-gouging' and taking advantage of the current environment to raise their prices above the rate of inflation—but these issues are having only a minimal impact on Australia’s favourite hardware chain.’
Other leading brands in the Top 10 include Myer, Toyota, Apple, BIG W, and Australia Post. NRMA, the ABC, and ING improved their rankings this year, moving to 11th, 15th, and 18th, respectively.
On the other end of the spectrum, Optus remains Australia’s most distrusted brand, with Facebook/Meta, Qantas, Medibank, and Harvey Norman joining it at the bottom. Amazon, TikTok, and X (formerly Twitter) also feature in the list of the ten most distrusted brands.
Optus, even before its data outage last November and CEO Kelly Bayer Rosmarin’s resignation, has already been on the bottom of the list, Levine said.
‘Risk assessments and procedures by executives and company directors across all industries need to formally factor in distrust,’ she said.
‘The flow-on effects from the extensive service outage at Optus in early November have provided a salutary reminder that dealing with distrust should be on the risk register of every board in Australia.’
‘Distrusted brands have felt the negative consequences of taking “business as usual” for granted.’
'These brands have been directly impacted by lax standards and not guarding properly against the potential for mistakes and errors to quickly metastasise into brand-defining events that destroy company value built up over many years in an instant,' Levine added.
What are your thoughts on the brand trust list? Have you had any experiences that have influenced your trust in a brand? Share your thoughts in the comments below
Whatever your choices are, they’re sure to have been reflected in a recent report by Roy Morgan.
In a surprising turn of events, Bunnings, the popular hardware store, has broken the 'supermarket duopoly' on Roy Morgan’s Trusted Brand list, surpassing Coles to secure the second spot.
Meanwhile, telecommunications giant Optus continues to languish at the bottom, retaining its unenviable title as Australia’s most distrusted brand.
Bunnings is the second most trusted brand. Credit: Bunnings Warehouse
Before the pandemic, Bunnings was the most trusted brand, according to Roy Morgan, holding the top spot until May 2020. However, it was overtaken by Woolworths, which has maintained its position at the top since then.
Over the past year (12 months to September 2023), there has been a disproportionate growth in brand distrust, as noted by Roy Morgan CEO Michelle Levine.
'As cost-of-living pressures deepen, this trend only gets worse as much of corporate Australia, from banks and airlines to supermarkets and utilities, are viewed by some as greedy and profiteering; Australians feel their wallets are shrinking while companies and executives are getting richer,' she said.
Despite this trend, Bunnings has significantly recovered, showing the largest absolute improvement in trust since October 2022.
The brand's reputation has contributed to its increased trust among Australians, with many claiming that the store does ‘what they say’, ‘the staff are friendly and helpful’, and ‘good price and people who know their jobs’.
Earlier this year, Bunnings won Roy Morgan’s Trusted Brand Awards in the retail category, while Woolworths won the supermarket category.
‘Bunnings has harnessed many of the foundational pillars of a trusted brand, including great customer service, communicating what it stands for and delivering, being an active part of the community, solving customer’s problems and expertise and product knowledge,’ Levine said.
‘The focus Bunnings puts on delivering great customer service matched with excellent product knowledge and a huge range of hardware items at competitive prices are key factors in the soaring levels of trust for the company over the last year.’
The trust in Bunnings' brand was strongest among people aged 35 and above, who are most likely to be homeowners or paying off a home.
Levine suggested that these older demographics, who are most likely to invest in home ownership and potential home renovations, have maintained their spending power despite the cost of living pressures.
‘As many Australians face rising cost of living pressures driven by high inflation and a record-setting series of interest rate increases, the reputation Bunnings has built over many years is paying off,’ she commented.
'Many other prominent retailers are dealing with perceptions that they are 'price-gouging' and taking advantage of the current environment to raise their prices above the rate of inflation—but these issues are having only a minimal impact on Australia’s favourite hardware chain.’
Other leading brands in the Top 10 include Myer, Toyota, Apple, BIG W, and Australia Post. NRMA, the ABC, and ING improved their rankings this year, moving to 11th, 15th, and 18th, respectively.
On the other end of the spectrum, Optus remains Australia’s most distrusted brand, with Facebook/Meta, Qantas, Medibank, and Harvey Norman joining it at the bottom. Amazon, TikTok, and X (formerly Twitter) also feature in the list of the ten most distrusted brands.
Optus, even before its data outage last November and CEO Kelly Bayer Rosmarin’s resignation, has already been on the bottom of the list, Levine said.
‘Risk assessments and procedures by executives and company directors across all industries need to formally factor in distrust,’ she said.
‘The flow-on effects from the extensive service outage at Optus in early November have provided a salutary reminder that dealing with distrust should be on the risk register of every board in Australia.’
‘Distrusted brands have felt the negative consequences of taking “business as usual” for granted.’
'These brands have been directly impacted by lax standards and not guarding properly against the potential for mistakes and errors to quickly metastasise into brand-defining events that destroy company value built up over many years in an instant,' Levine added.
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