IRI recorded the global trend towards austerity in the period of the 1970s-1980s
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Consumers in Europe, Asia and the United States are returning to the austerity regime that was prevalent in the 1970s and 1980s during high inflation. In particular, as noted in researchIn an IRI survey, consumers are once again taking food to work, buying discounted expiring food, consuming less alcoholic beverages, and shopping for bargains more often.
The IRI study, which surveyed more than 3,000 people, covers 14 key global markets in Europe, Asia and the US and assesses the impact of changes in consumer demand in 230 categories of consumer goods, or more than 10 million items. The study covers 12 months through July 2022 inclusive.
The data shows that more than half of consumers are experiencing a crisis: 61% of them are concerned about how this situation will affect them personally, 71% have already made changes in how and what they buy. Thus, 58% of consumers are now comparing prices for similar products from different manufacturers, 58% of consumers have reduced the cost of food and heating, 47% intend to eat less often in cafes, restaurants, etc., 35% of consumers have begun to spend savings and take loans to pay accounts, 22% have become limited travel, 21% plan in advance how much they can specifically spend on some needs. When thinking about buying a new product, buyers now primarily focus on its cost (62%), availability (49%). And perhaps its higher quality (15%) or innovativeness (8%) became much less important for them. Now consumers are more often ready to wash themselves more thoroughly in a fitness club so as not to increase their water bills at home, they try to make their own coffee at home, and not buy somewhere or order delivery, invite hairdressers or cosmetologists to their homes, rather than go to salons, take Take home-cooked food with you to work or on a trip.
The change in consumer behavior has negatively affected retailers’ overall sales, but at the same time has strengthened sales of retailers’ own branded products, as they are usually the most value for money. For example, in Europe (Germany, France, UK, Spain, Italy, the Netherlands), sales in this segment grew by 5.4% since the beginning of the year, and they account for 35.4% of the total sales of consumer goods, which is €216 billion.
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