Increasing consumer demand for low-priced products

In the third quarter of 2009, households bought 1.3 percent less daily consumer goods in terms of value, compared with the same period a year earlier – state data by GfK Hungária. Trends in Hungarian food retail in the third quarter followed the credit crisis – both GDP and retail volume index were below last year’s. According to Krisztina Kovács, Consumer Tracking sector manager at GfK Hungária in the firs two quarters consumers tried to buy less daily consumer goods, while in the third quarter they were looking for lower-priced products – very often private label products or smaller producer brands. Milk and other dairy products, cooking oil, mineral water and carbonated soft drinks: in these categories, households bought approximately the same amount, but spent less. Spending willingness also fell in the third quarter, by 8.3 points to 108.5 points. The survey also revealed that negative news vastly contributed to consumer pessimism: in September 2009, 87 percent of the population thought that the increased rate of unemployment will not decrease or will increase further.