War and Inflation Broke Consumer Confidence

The war in Ukraine, the spiral of inflation and energy crisis leads to someone consumer confidence crisis. While these three elements are at the center of Spaniards’ concerns, Covid has already lost ground. The international context is already affecting the country. Consumption habits and delaying some purchasing and spending decisions. It is one of the conclusions reached by the consultant. weighbridge it also identifies consumers’ “desire to regain time lost due to the pandemic” in a growing business spirit. cost control.

72% of consumers see bad economic prospects for Spain and at the same time 74% think positively about life According to the ‘Global Issues Barometer’ report released this Tuesday by Kantar Insights – the most in Europe. “Beyond the end of the war for the Spaniards, the main expectations are to go back to ‘Carpe Diem’ (seize the day), i.e. to go on vacation and celebrate life events (weddings and other celebrations of the pandemic)”, the report says, accounting for 57% of global GDP. It concludes based on a large-scale survey conducted in 18 countries worldwide. The study, conducted on 9 and 10 April on a sample of more than 10,000 people through an open survey, is based on responses expressed orally and then analyzed using artificial intelligence-based techniques.

Stop the most important expenses

By Martin WohlhartDirector of the study in Spain, “If we started the last decade with an economic crisis, we are doing it with three crises at the same time.. Out of the pandemic, to inflation and the war flying around. That leaves us as a Spanish consumer who will spend at a very cyclical moment, during the holidays and with events and celebrations waiting to really celebrate.” But he acknowledges that the evolution of consumption in the coming months will “depend on” the evolution of war and the cost of raw materials. ANDVacation or leisure spending will not end, but we will think five times when making more important expenses.“.

Kantar thinks that Spanish households cover the household budget but they also deal with basic items like bills or food without any problems, the first being 69%, the second 85%. On the other hand, medium or long-term related expenses are considered prudent or impossible to meet directly. 55% say they can’t undertake to buy a vehicle and 31% say they don’t want to risk it even if they can.

87 percent of Spaniards worried about war in UkraineIt surpassed Poland (96%), which borders the conflict zone, which positions us as the country of greatest concern. Beyond the war, the Spaniards show a wide variety of concerns; economy and education (49% each) and health (45%) are the most cited topics, even above the pandemic, which is currently a 38% concern. Spain is one of the countries with the highest vaccination rate among the population. However, when it comes to problems to be solved, Spaniards demand more action and solutions on social issues (30%), followed by the economy (23%) and climate and environment (20%). The Spaniards therefore show certain differences between what worries them and what urgently needs to be fixed.

68% of consumers know that prices have risen very sharply, more hypersensitivity than other European economies such as Germany, where 59% have the same sentiment as the increase in the cost of living; or France and the United Kingdom with 49% and 48% respectively.

Four in ten Spaniards agree that they will make changes to their local economy to reduce costs, while a third will change behaviors that represent a break for the portfolio, such as driving fewer kilometers and saving money on gas stations.. One out of every four people will put a limit on the money they save each month in the piggy bank, It has been one of the most repeated behaviors during the pandemic. According to the INE, the savings rate in 2020 was actually a record, reaching 15% of disposable income. This can directly affect certain life plans. In fact, 40% already feel that some of their vital projects have been affected by inflation. Therefore, the increase in the cost of living has an impact of 17% on house-changing and moving, and 14% on retirement plans.

While the war in Ukraine is of great concern to almost 9 out of 10 Spaniards, only 14% want governments and global organizations to do something. The same goes for the pandemic, as 38% worry, but only 7% want society and those responsible for it to find a solution. Even inflation is perceived from this rational distance. The economy is 49% concerned, but only 23% of the population demands facts and actions to solve the problem. Wohlfart comments, “All this leaves a halo of possibility for the Spaniards about crises, because they get used to crises so much that they think that even though they have a tie in them, the waters will go back to their natural flow and everything will go back to normal. It’s going to work.”

climate change

Another conclusion of the report is: climate change continues undetected as an emergency, as in war, economy, or epidemic. That’s why 20% of Spaniards mention environmental problems as one of their biggest concerns. These data take us away from neighboring countries such as France or Germany, where about a third of the population is very sensitive to this issue. 47% say they stop purchasing certain products or services because of their environmental or social impact. A similar percentage say they seek companies and brands that balance their impact with sustainable actions (planting trees or similar initiatives). Basically, Spaniards have sustainability in their pockets, so two out of three consumers say they want to buy sustainable products, but brands need to make them more affordable for their economy.

Source: Informacion

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