According to a report, the majority of Argentines have lowered their purchasing level, although they wanted to maintain their preference for well-known brands when purchasing a product. What is the long-term outlook?
6 out of 10 Argentines say that their level of consumption decreased compared to last year. In the Generation X (43 to 54 years old) are 7 out of 10.
According to a report prepared by Taquion, in a sample of more than 1,000 people, 36% said that their consumption had decreased significantly compared to last year, 24% slightly. Meanwhile, only 8% of those surveyed said that their spending had increased.
Consumption is clearly affected compared to last year, in a context of sharp recession. However, it is not the same for all areas. What Argentines postpone the most is long-term consumption, the document stated.
In the last three months:
- 62% of Argentines bought at least one item of footwear and clothing
- Only 39% bought appliances or technology
- 1 in 2 made a leisure purchase
While the first behavior of many consumers is pay attention to pricesthere is another variable that strongly influences decisions in all areas: familiarity. Despite the loss of purchasing power and high prices, the best-known brands remain the preferred ones, according to this survey.
In food and beverages, 48% would change brands prioritizing price, but 84% buy brands they already know.
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Mass consumption continues to plummet: can it recover?
He massive consume fell by 12.5% in June. The bonus failed to reverse the trend and the decline was more pronounced compared to May. Thus, the cumulative total for the first half of the year shows a decline of 8.5% compared to 2023.
The official inflation data for June revealed what the Government itself was already visualizing through the Argentine Electronic Price Advertising System (SEPA): that Food and drink prices are growing well below (3%) of the variation in the General Consumer Price Index (4.6% INDEC CPI), in a highly recessive context. And the same trend is observed for July, according to public data and private estimates.
Companies believe that current consumption is a floor and that it should begin to pick up towards the end of the year and are carrying out aggressive promotions to improve the numbers. The sector’s greatest expectations are set for 2025, hand in hand with economic growth driven by macroeconomic stabilization and the exit from the exchange rate restrictions.
Source: Ambito
