Trade: GfK: Lower food prices stimulate appetite for expensive products

The increase of pensions, salaries in education and healthcare, average income and the reduction of VAT for foodstuff led to the people’s higher purchase power and confidence, according to a GfK study.

Those increases were also reflected in the 1.5% increase of household consumption for FMGG products, compared to the previous year.

Market dynamics was given by growing volumes of purchased products which went up by 4% last year. Once VAT for food dropped, the upgrading phenomenon appeared for the first time in the last three years.

This phenomenon was also backed by the increase of categories of more expensive products. “For instance we can speak about categories like: fish and seafood, dry fruit, honey, cereals for breakfast, cyder, special body care products.”

Market growth comes only by means of modern trade, where figures show a different tendency than in traditional trade.

The purchase behaviour has suffered slight changes compared to previous years: consumers go shopping less often but spend more every time.

“The decrease of purchase frequency and the fact that Romanians can afford buying more expensive products show a certain relaxation of those purchases. They are less strict in observing their shopping lists and although they are still looking for good price offers they seem to be less inclined to buy the cheapest products,” says Raluca Raschip, Consumer Goods and Retail Director GfK Romania.

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