Inflation certainly hits the pockets of Argentinians hard. From research conducted in Kantar’s Insights division, it appears that more than half of consumers have been forced to change their consumption habits, give up your favorite brands and products to make room for more economical solutions.
The work took place in February: we carried out a nationwide survey on the consumption habits of Argentinians in the current moment of crisis and on their reaction to the offers and promotions provided mainly by supermarkets.
51% of respondents said they had stopped buying their favorite brands and switched to cheaper ones. And 52% say they have opted for other, cheaper categories compared to the products they usually consume. Only 34% managed to maintain their consumption habits (especially residents of CABA, with a high socioeconomic level and among men) while the majority had to opt for cheaper brands or categories, a trend that is accentuated in greater Buenos Aires and among women.
In a scenario of price increases that do not accompany income, promotions and discounts become essential to continue accessing favorite brands. Indeed, 82% of respondents say they only buy their favorite brands if they have discounts or are on promotion.
Although we found that 87% of Argentines have become much more attentive to promotions or discounts, 85% underline that in supermarkets There are fewer promotions than before.
Although the majority of consumers (55%) say they only buy what they need, promotions They play a leading role in organizing purchases: Products are purchased to take advantage of offers (especially at high socioeconomic levels) and planned based on available discounts. We can say it 7 out of 10 Argentines organize their purchases based on available discounts.
Promotions have become an indispensable ally to keep Argentinians’ money going every day. And this has meant that, in an extremely difficult context, 7 out of 10 people can seek treatment, especially in the lower socioeconomic levels.
On the other hand, we observe that the tendency to You need more promotions to spend your money and/or treat yourself to a gift It gains relevance in families with at least one child. From which it can be deduced that, although brands that carry out promotions and offers can generate a greater emotional bond with the consumer, this becomes more powerful among families with children.
87% of Argentinians surveyed attribute more value to brands that run promotions and offers to help consumers make ends meet in a time of crisis. And it is notable that of this universe, 89% are young people (aged 18 to 34) from lower socioeconomic levels.
In short:
- The Argentine consumer has changed his consumption habits following the crisis. Influence the choice of brands and categories.
- For this reason, promotions and discounts become relevant. Organizing the purchasing agenda, helping to make money work and allowing the consumer to pamper themselves.
- Nonetheless, Argentines believe that there are several characteristics of these shares that can be improved: limits, conditions/quantity and clarity in previous prices.
At Kantar we therefore see that brands have interesting opportunities in this context:
- Promote promotions and discounts, ensuring distribution and reach. Mainly in basic basket products which impact lower SES to a greater extent.
- Becoming an ally of consumers, enhancing proximity by proposing itself as an option to help the economy and also allowing them to take care of themselves.
Be as transparent and empathetic as possible with the current situation. It must be taken into account that consumers appreciate brands that offer real discounts and/or promotions more.
Source: Clarin
