The most conservative estimates indicate that in the first five months of the year, prices will have risen, on average, 43% and for the whole year, above 130%. This dynamic not only affects the statistics, but also impacts the consumption decisions of the population, differentiating the goods that make up typical consumption according to their social position.he.
In moments of uncertainty, people tend to cling to what we know to feel more secure, anchored, and calm. A search that we can recognize in different areas of life and also something quite frequent when consuming.
And although this search for security in contexts of uncertainty is a common behavior in different geographies, in Argentina consumers have “a master’s degree” in dusting off and activating our “survival superpowers” to feel that we control our consumption circumstances as much as we can. possible.
At Youniversal we have a Trend Lab, which is a continuous survey of social and consumer trends, as well as social humor and its impact on purchasing decisions throughout the entire social pyramid. We conducted interviews and surveys at a national level and today we found a strong resurgence of some consumer habits that we will share below and that make up five trends:
mbetter bird in hand. In the absence of price references thanks to the effects of galloping inflation, consumers prefer the concrete to potential “abstract savings”. Thus we find that those who have some availability or some “extra”, “save by consuming” durable goods of all kinds. The power of the concrete and tangible wins over reservation or investment difficulties. In our latest surveys, 82% said that inflation was at the top of their concerns and 67% believe that their purchasing power decreased in relation to inflation..
Discount hunters. Argentine consumers seek discounts in all their forms and at all socioeconomic levels. We find more frequent purchases, smaller in size and amount, and fewer stock purchases for the home (the latter even less in the lower social strata). In the search for convenience, I grewand and improves the perception of value when purchasing at wholesalers and fairs. Consumers of medium and low socio-economic level (NSE) are also encouraged to buy individual products when their pockets are really tight. As forms of payment, the search for promotions and quotas grow. In this sense, 83% of those surveyed stated that they had to make some change in habits or adjustments when buying.
B brands, not so B. There is a lot of openness to buying second brands and own supermarket brands, always looking for “the best value equation”. It is not just about the price, but that what I paid for, works for me, complies, works, I like it depending on the case. In general, people try first with categories that they perceive as “lower risk” in functionality or flavor. If you later feel that what you bought worked, you buy again. In this way, it is expanding its trust in lesser-known brands, which are expanding their presence in homes thanks to their results at a good price.
The cuttable vs. the indispensable. The evaluation of which products and categories enter the home is very dynamic. Month by month, sometimes week by week (in the low SES, it can even be day by day), consumers are evaluating, as if it were a consumer GPS, what goes in and what goes out of their purchases or consumption. Recalculating and evaluating priorities, leaving dispensable cut-outs on “stand-by” to optimize budgets, but also wanting to enjoy (or at least, seeking to “suffer as little as possible” with what they choose).
ANDl pleasure like vitamin. Consumers feel that what they can control in any case is their little “bubble” of family, friends and the moments they can spend with them. Pleasant moments that “revive” them, that reenergize them. In this sense, pleasure has nothing frivolous or superficial, but rather a deep emotional search. A taste, a pampering, a permission, are much more than an “allowed”: they become indispensable.
As we can see, all of these that we are mentioning are trends, but at the same time, they are reactivated on Argentine lessons that “already run in blood” and are revived at each new peak of uncertainty.
For Argentine consumers, once again it is about protecting themselves, trying to consume intelligently, feeling that we choose and not that we resign ourselves. Faced with the general tension that comes from living with so much uncertainty, there is a very focused gaze on the present, trying to optimize and enjoy today as a form of well-being and defense. Because we all know that deep down the bonds, the friends, the good times, the enjoyable flavors, are what no one and nothing can take away from us, they are what helps us continue one more day, despite everything.
Ximena Díaz Alarcón is Co-Founder and CEO of Youniversal, a consultant specializing in market research and trends.
by Ximena Diaz Alarcon
