The inflationary spiral, which has ended up triggering the war, is already causing families to condition their behavior when buying, which in turn is triggering private label sales. These are the two main conclusions drawn from the data offered by Aecoc Shopperview and Nielsen from two reports presented this Wednesday during the 27th Aecoc Congress on Commercial and Marketing Strategy. A survey in which 70% of consumers say that in recent weeks they have changed their shopping habits due to price increases, prioritizing the value of products before offers.
A factor that has also had immediate effects on consumer choice when buying.
The distribution brand (popularly known as white label) has emerged as the great winner due to the situation: its sales have skyrocketed 11.8% in the last four months and it already represents 43% of total sales of products, by 57% of manufacturer brands.
The reports presented also show how, in the face of uncertainty, consumers choose to simplify their shopping cart and show less interest in innovation. According to data from Aecoc Shopperview, 51% of those surveyed say that they currently buy basic products and pay less attention than before to new products appearing on the market.
In any case, the forecasts for the summer are quite positive in some of the consumer goods sectors. Especially for the Horeca channel (Hotels, Restaurants and Caterings). The survey reflects how 59% of the consumers consulted plan to go out on their summer vacations, with 75% of them assuring that they will do tourism in Spain, while 27% will go to their second residence and 19% will travel abroad. In addition, four out of ten believe that this summer they will spend more than last year.
In any case, the first four months of the year show a clear decline in consumption by Spaniards. The head of analytics at Nielsen, Ángeles Zabaleta, has anticipated a drop of 1.3% in this first quarter, although she projects a growth of 3.7% in billing until the end of the year.
The mass consumption sectors already experience the situation as a “challenge”, although the impact is quite recognizable among businessmen in the sector. Close to a third (31%) believe that the results of the sector will stagnate in the second half of the year, while 7% believe that they will be reduced, according to data from Aecoc Shopperview. In any case, 56% of distribution companies expect 2022 growth for the mass consumption sector.
Among the main concerns for 87.5% of distributors are the impact of the war on raw materials, as well as possible breaks in the supply chain and changes in habits that may occur in consumers, with a possible contraction in demand.
“The international context, the inflationary situation and the tensions in the supply chains draw a complex and highly uncertain scenario for large consumption companies, which, even so, are mostly optimistic regarding consumption in this 2022”, has pointed out the manager of commercial strategy and marketing of AECOC, Rosario Pedrosa.
For their part, manufacturers also point out that they will have to face these challenges, although they maintain more favorable forecasts for the end of the first half and the rest of the year. 43% expect to close the first semester above expectations, while 45% will be in line with the objectives set and 12% believe that they will not meet them.
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