The inflation and the ukrainian war have directly impacted the consumer behavior in Spain. According to data from the Kantar Consulting and your report ‘Consumer Insights’Based on 1,600 representative interviews, consumer confidence is down almost 12 points. The report analyzes the assessment of the economic situation of the interviewees and the country, the assessment of the moment of consumption and the economic perspectives six months ahead. The first quarter of 2021 shows a drop of 18 points when assessing whether the current is a good time to make large purchases. Despite this drop, the income and job security of the employed have not changed compared to the previous wave. The economic situation of the household does not change substantially.
The Kantar experts they interpret that the answers portray a situation in which consumers consider that “this is not the time to make large purchases that compromise family budgets in the medium term and that the country’s economy is going to suffer”. Despite this, the answers indicate that the majority of consumers consider the current bad situation as temporary or conjunctural. 43% of consumers believe that consumption levels need to be reduced, 14 points more than in the previous quarter.
Distribution brand
The advance of ukrainian crisis and the inflation They will be decisive when it comes to establishing whether this lack of confidence in consumption will be transitory, as shown by some more optimistic indicators. For Kantar, the consumer enters a phase of control of expenses and the attitude towards brands returns to the idea that it is better to buy brands from distribution (45%), dropping almost 14 points the preference for buying brands from manufacturers up to 29%. As an opportunity, in the search for the best prices, the consumer is open to trying different brands, and this attitude has grown seven points in the last period.
Feeding
Despite the fact that there is a certain perception of “temporary” around the crisis, a sharp drop (-34.6 points) was recorded in the assessment of whether it is a good time to buy food. This figure enters negative values (the percentage of consumers who believe that it is a bad time to buy them is greater than those who say it is a good time) and abandons its traditional first position as the category with the best valuation of the moment of purchase. Other products that have traditionally always been positive also enter negative values: beauty products, small appliances and clothing or accessories. No product category of the 25 analyzed saw its valuation at the time of purchase grow and only 3 remained positive: training, drugstore and cinema/shows.
Leisure
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After the restrictions of the pandemic, there is a certain reluctance to reduce the leisure expenses related to bars and restaurants and shows, which are, in fact, the categories in which the valuation of the moment of purchase decreases the least. It also happens, although with less incidence, in the case of weekend trips.
Expenditures on home equipment seem to be postponed and in all cases the valuation of the time of purchase has fallen a lot: small and large appliances, stereos, home accessories, furniture, home renovations, mobile devices, computers , etc. In short, everything whose useful life can be extended will be extended if it is not urgent. As was happening in previous months, large expenses seem postponed to a longer term: cars, housing, complex financial products, etc.