Romania: booming hyper markets and brand loyalty

According to Nielsen findings, the primary consideration for the average Romanian consumer in choosing a store is ease of access. Finding everything in a single store ranks only third among priorities. In Hungary, finding everything in a single store is the first among priorities, while convenience and a modern and spacious interior only come second and third respectively. The popularity of hyper markets has been growing dynamically in Romania. While 32 per cent of customers interviewed in 2006 spent the largest part of their FMCG budget in hyper markets, this proportion has risen to 39 per cent by 2008. The same numbers are 26 and 28 per cent for super markets. The market position of traditional stores and Cash & Carry stores has deteriorated accordingly. Modern store types show less dynamic expansion in Hungary than in Romania and traditional stores are losing their market more slowly. There is also a difference in the proportion of the FMCG expenditure spent on fresh food, with 47 percent in Hungary and 57 percent in Romania. Romanian consumers buy body care products most frequently in hyper markets (38 percent), but hyper markets are also very popular places for buying packaged food (36 per cent). The most popular products in supermarkets are sweets, carbonated soft drinks, fresh meat and poultry. Marketplaces dominate sales of fresh fruits and vegetables. Brand loyalty is strong in Romania. 54 per cent of customers buying coffee go to another store if they fail to find their favourite brand. This percentage is 49 for body care products, 34 for dairy products and 28 for packaged food. In Hungary, only 31 per cent of customers go to another store for their favourite coffee brand, while this percentage is 12 for sweets.