Europe

Romanian purchasing power declines were seen in Easter shopping – Romanian Journal

According to the latest FutureConsumerIndex survey conducted by EY Romania at the end of April 2022, most Romanians in big cities are willing to spend 200-500 lei on Easter gifts this year, the same amount for Easter celebration meals. Was provided. Among Romanian urban consumers, they have college and graduate studies and above average income. At the same time, 2022 was a year when there was no demand for airline tickets or holiday packages. Apparently, Romanians, like global index respondents, are worried about future economic development, so the overwhelming proportion they save more (68%) and invest in education (22%). I’m saying.

There was a decline in purchasing power in the amount allocated for this year’s Easter holidays. Therefore, 63% said they did not wait for the discount campaign and did not save for Easter shopping, but the majority of EY Romanian survey respondents (65%) said they had allocated 200-500 lei this year. I did. 28.5% of them said they were willing to spend 500 to 1,000 lei. At the same time, 8.7% indicate that they plan to spend less than 200 lei, and the same percentage indicates that they are ready to spend more than 1,000 lei. The majority said they spent 30% more than last year.

For this year’s Easter gifts, 44% of respondents said they had 200-500 lei, 21.5% said they had 500-1,000 lei, 19.3% said they had less than 200 lei, and only 15% said they had more than 1,000 lei. At the same time, 37.3% of respondents to the Future Consumer Index survey feel that their purchases have increased by at least 10-20% this year, and 18% of respondents say they’re more than 30% this year. It’s also worth noting that 22%, quite important, say spending is on par with last year.

“For two years we’ve been waiting for a return to normal. Just as we seemed to be approaching, we were approaching a new crisis. And global EY future consumers Price index surveys have fundamentally rethought how people around the world live their lives in times of rising inflation and global turmoil, and what they really want to do with consumerism and its value. EY Romania’s survey also shows significant changes in Romanian consumer behavior if it indicates that it has asked itself if it is. “, EY Georgian Iancu, a partner in Romania’s retail and consumer products sector, said. “We’ve been pushing more than 1,500 lei to further limit budget allocations because of the shopping frenzy and the plethora of happiness allotted to the holidays at the end of last year. In addition, Romanians are global. Following trends, we are starting to save and invest in education. “, Georgiana Ianck said.

According to an EY Romanian study, in the current economic situation, the most important criteria for making a purchase decision are quality – 65.6%, price – 37.3%, product sustainability – 20%, delivery potential – 19.7. %, Origin – Traditional products, not imported products – 18.9%, Accessibility – 12.2%. Only 10% of respondents make purchase decisions based on brand power.

When asked to assess the impact of current conditions such as geopolitics, health, economic crises, and rising inflation on an individual’s situation, most (68%) of respondents said, “More money than in the past. I’m trying to save money. ” While 48.3% said they were able to meet (some or all) their economic goals because they saved during the pandemic, 19% found it difficult to pay for food, medical, housing and other necessities. increase. 60% of those who responded to the survey said their investment was reduced, 41% said their dividends were reduced, and 22% said they suffered financial losses...

“Uncertainty about managing rising living costs has led 60% of global respondents to want to save even more in the future, and half report that they have already adopted this behavior. This trend is Romanian consumption. The fact that nearly one-fifth of them are facing financial difficulties, as reflected by others, only shows that consumer confidence is even worse. Georgiana Ianck says.

62% of respondents believe that it will take at least a year or two before the economic conditions caused by rising energy prices and geopolitical conflicts do not affect our lives. Meanwhile, 18% believe that geopolitical conflicts and economic crises will continue. At least 4-12 months. Of note is the high percentage of those who said they couldn’t estimate – 17.2%.

With respect to trends over the next six months, Romanians expect to spend the most money on education and experience (relaxation, entertainment, sports) as well as food, savings and investment.

Also, when making a purchase decision, the majority of respondents (70-76%) consider the company’s reputation and not only use product reviews, but also pay attention to the company’s employees. Is answered. The next most important factor in making a decision is the transparency of the company and its community support activities. This is a valid statement for 59.2% of respondents.

Romanians have high expectations from businesses. Most consumers believe that “corporate behavior is as important as the products / services sold,” and continues to be responsible for influencing positive changes in the world and caring for its employees. Profit.

The EY Romanian survey also focuses on the environmental issues of Romanian consumers. Most people were worried about the high levels of waste we face and the pollution of water and air. Climate change and human rights are also concerns for many respondents. Surprisingly, wealth inequality is the last of concern.

https://www.romaniajournal.ro/business/ey-the-decline-in-the-purchasing-power-of-romanians-was-seen-in-their-easter-shopping/ Romanian purchasing power declines were seen in Easter shopping – Romanian Journal

Back to top button