Greek consumers have become more “price sensitive” since the start of the pandemic as they see their financial situation deteriorating. Or they fear that this will happen in the near future, given the uncertainty about the development of the situation with COVID-19 and the state of the country’s economy as a whole.
It is significant that for every 1% increase in price in basic supermarkets, there is a 2.5% decrease in sales. More than half of consumers turn their attention to another manufacturer of the product, the price of which is lower for the same type of product (for example, cheese from different manufacturers).
It is noted that in 2020, marketing campaigns in supermarkets were limited. The key question, of course, is what will happen in the near future, as prices have already increased in supermarkets and more is expected to follow as there has been no decline in the cost of key raw materials and transportation costs.
According to research firm NielsenIQ, presented at a dedicated online seminar, 53% of consumers in Greece can only meet basic food and housing needs, while 74% are now seriously concerned about the cost of living and have changed their consumption habits.
In fact, 54% are people who started to worry about costs after the outbreak of the pandemic… What most consumers now experience is the savings they spend on staple food and home furnishings.
For this reason, when asked how they manage spending in supermarkets, 51% say they will change the brand if the one they chose is more expensive. 48% will choose products that are within their budget, 42% said they buy what is on offer regardless of brand, and 37% are always looking for branded products.
In addition, in 2020, the first year of our life with a pandemic, in response to rising prices, 56% of those surveyed said that they buy only the essentials.
NielsenIQ data also shows that temporary price cuts are the most effective form of promotion. Between May 2020 and April 2021, the share of food products offered in the form of temporary price reductions was 73%, compared with 68% between May 2019 and April 2020 and 62% in period from May 2018 to April 2019.