As a consequence of the recessionwhich generated a sharp drop in wages and, therefore, of purchasing powerhe Consumption plummeted in April by 14%according to the consultant’s measurement Scentia. In that context, Buyers also change habits keys when going to the shops and this partly explains the large declines in some products, such as dairy products.
These data correspond to a survey “Consumption and economic context” collected by Ecolatina in March of this year. There it is highlighted that 9 out of 10 consumers “changed the way they shopped in supermarkets”.
Consumers stopped buying products they previously consumed daily and turned to promotions, according to the report. It should be noted that, as the Minister of Economy said, Luis Caputothere are more products with discounts in stores due to the overstock that the companies generated before the libertarian management of Javier Milei.
Prices increase and consumption stops
After years of inflationary accelerationwith several companies that they speculate on prices, especially for food but also for other products such as clothing, more attentive and critical consumers are beginning to appear regarding the increase in products, in a context of drop in purchasing power. According to the survey, those who responded to the survey stated that They stopped buying products that they previously consumed for their “excessive price”.
Furthermore, the report specifies that those who abandoned these products the most are Argentines from high socioeconomic level and individuals over 50 years old.
“Dairy, hygiene and personal care are the categories most punished in this regard, especially in the lowest socioeconomic level in dairy, and in the middle in hygiene. Cleaning is abandoned by those over 50 years old, but without differences by age and snacks by those between 18 and 29,” the report adds.
Consumers look for more offers and turn to second brands
In this context, companies began to generate greater discount mechanisms to encourage consumption. 95% of those surveyed take advantage of promotions in their purchases, especially 2×1since it is the most effective to reduce purchases.
“About 7 out of 10 respondents stated that 2×1 is the promotion they take advantage of the most, while others use them less frequently, such as the percentage discount with virtual wallets either Bank cards“says the consultant.
Besides, to the At least 6 out of 10 consumers turned towards second brands and, to a greater extent, from the chains themselves, according to the report.
In this sense, the products that suffered the greatest migration from first to second brands were those of warehouse, cleaning, hygiene and personal care. The segment Dairy It was also affected, although to a lesser extent since it is a category that was directly abandoned.
In terms of age, those most likely to try chain products were young people. Even, 52% of those who said they decided to try them find that they work and are even better than the one they used previously..
Almost half of those surveyed said they would cut home services
Moving on to the everyday sphere of consumers, almost half stated that they had to cut back on home services: mainly the cable operator and the streaming services. But also 2 out of 10 mentioned having abandoned prepaid medicine. On this last point, the report highlights that “although it has a low incidence of cuts, there may have been changes in plans”.
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The vacation were also affected by the recessive economic context, since only 33% of those surveyed were able to go on a getaway, but could not enjoy it in its splendor due to excessive prices. The rest could not travel because they could not pay the costs involved in moving.
In this context, Argentines had to give up not only services and vacations, but also forbearance expenses by 63%especially especially in clothing, going out and entertainment, giving little room for enjoyment.
Source: Ambito
