this rise Price:%s this is 2022 proved one of the typical axioms. distribution industry; Even if the prices go up, you always have to eat. this Kantar Consulting This Tuesday, a study was published confirming that consumption is now more prominent as the health crisis ends, rather than the rise in prices. The idea is that Spaniards continue to consume in the supermarket despite rising prices, only that large supermarket chains gain an advantage to increase sales of their own products (private label) compared to leading brands: the distribution brand, driven not by consumer demand, but by the increase in retailers’ offers, confirms Kantar experts. In other words. “In the face of rising prices, Spaniards are choosing not to buy less food and drink but instead to reduce their spending on other goods and services first,” concludes Kantar.
this supermarket chain strategy It is clear that controlling basket price perception by consumers is “to compensate for the increase in prices with the increase in quota in the shopping cart of private label or lower priced products”.
Jorge Folch, managing director of Kantar’s Worldpanel division, stated that normalization of the mass consumption sector is expected with the reversal of the pandemic, but stated that the start of the year was marked by the European Union. inflation recovery, Ukraine war, transportation crisis or overseas (OOH) recovery. The most perceived thing in this context is the loss of confidence of consumers who tend to cut back on their luxury spending.
Experts are particularly wary of seeing how much consumption frequency has improved. “While nine out of 10 people have already returned to away-from-home consumption, the maximum recovery will come from the hands of the ‘heavy consumer’ and with an increase in consumption frequency still 23% lower,” he explains. Cristina García Source is Kantar’s out-of-home consumer expert.
According to weighbridge expert César Valencoso, the development of prices is the most worrying factor in the short term, due to the end of the health crisis and the monetary policies implemented, aggravated by the war and the carriers’ strike. Valencoso noted that inflation does not affect all sectors in the same way: when it comes to consumer products, it was 4.9% between January and April of this year – excluding fresh perishables – and this is a high, but close to 10% headline, he says. softer than inflation. The consultant’s analysis confirms that inflation and demand are not related, because they are products of basic needs. Although only 35% of consumers are actively trying to adjust their spending, social alert and the increase in the supply of lower priced items may prompt others to buy products from cheaper categories through private labels or dealers, which is what it’s called? ‘downsell’ effect. According to the consultant, this effect is not very pronounced yet, but may become very pronounced in the near future. White label already has more than 40% market share.