Consumers spending more wisely

According to Mrs. Szalóky Judir Tóth, director of Nielsen, the majority of consumers have maintained their level of consumption. In fact, sales have expanded in half of the 20 largest food categories monitored by Nielsen, during the first half of the year. 59 per cent of consumers interviewed said that they find it harder to make ends meet thn a year ago. However, only 38 per cent said that they have cut back heir consumption. 50 per cent consume as much as they had before and 12 per cent have increased their consumption. At the same time, consumer have become more price sensitive and open to promotions. Private labels are also becoming increasingly popular. People find ways to maintain their level of consumption, like switching to cheaper brands or visiting cheaper stores, or waiting for promotions. Shopping is better planned than before and basket values have dropped. For many consumers, a wide assortment is still more iportant than low price. According to the Retail Index of Nielsen, sales of household chemical products and food grew by 18 and 16 per cent respectively in discount stores, in the first half of the year, compared to the same period in 2006. Hyper markets show growth of 12 and 15 per cent rspectively. While modern store types have produced more than average growth in sales, traditional stores show less growth or even decline. Brand loyalty is exceptionally high among customers of supermarkets. The target group of the August 2007 survey about consumer habits was the 18-65 age group. The size of the sample was 1,000. Four main consumer types have been identified. 1. The largest group is made up of consumers who “seek harmony” (28 per cent), who care about tomorrow, a balance between work and private life, and the years to be spent in retirement. They are not willing to make compromises regarding quality and most of them do not consume less than a year ago. They are better educated than the average. 2. „Content with what they have” (26 per cent). They try to enjoy every minute of their lives and can afford to do so in general. They do not save money, and live in the present. They do not look for cheaper stores and do not consume less than before. Quality is important to them and brands also have some significance. Young and single people are over represented among them. 3. „Want to show off” (16 per cent). They feel more or less that they are living in a shop window. Brands are very important to them. They are willing to make sacrifices in order to be able to buy trendy products. More of them have switched to cheaper FMCG products than in any other segment. They often use credit to maintain theri level of consumption. “My appearance is more important to me than what I have at home” is a common attitude among them. Inhabitants of cities and young people are over reprsented among them. 4. „Resigned” consumers (29 per cent): they find it hard to get by and brands are not important to them. Cultural programs, self-education and the environment are not priorities for them. They try to save money in every possible way. Most of them are retired. The most popular way of saving money is looking out for promotions.