We all know that mood and consumption are related. Beyond the possibilities of the pocket, which are ultimately the great barrier to being able to consume or not, there is something emotional that affects how we choose and buy. This is something that we continually investigate in Youniversal’s TREND LAB and this year we were conducting interviews, focus groups and surveys at the national level among men and women over 18 years old up to 75, at all socio-economic levels to see precisely these issues and how they affect brands.
As a summary of 2024, we wanted to compare some variables and how they occurred in March and how they are today at the end of the year, in the last survey we carried out in December, on 1,350 cases nationwide. Let’s look at some results:
“We live a constant end to the month.” Every day is the end of the month, as a woman expressed in one of the interviews we did. To consume, for the vast majority of Argentines it is necessary to juggle between promos, cards, virtual wallets and practically take a course to know when and how it is best to buy and with what means to pay. Consumer loyalty towards means of payment and places of purchase is very low and as a young boy in another group said, “We Argentines are gifted”: Wherever the best discount is, that’s where people will go.
Trying to cover the basics. The year began with many rate adjustments and a lot of concern among people regarding the possibility of being able to pay for prepaid services (according to the latest estimates, there are 6.3 million people in Argentina who have prepaid medicine as their main coverage option medical).
Especially the increase in prepaid ones generated great concern, since it is a service considered basic to feel calm about their well-being and that of their families. So far this year, the fees for these services have accumulated an increase of close to 121%. Based on this, many families decided to unsubscribe from the service (approximately 10%), while other members decided to downgrade or switch to a cheaper one. Companies, for their part, reacted by offering some modular and more flexible alternatives, although they continued to increase month by month.
“Two countries in one.” Another of the interesting findings of this annual research was to verify that, indeed, there are at least two countries in the mind and in the pocket. The country of those who can cover their basic needs and even save a little, and those who cannot make ends meet.
In March, 14% of those surveyed could make ends meet well and even have a small savings, while 37% could barely make it, without savings, and 49% could not make ends meet and almost Half of this 49% declared that they had great difficulties. In December these numbers are somewhat better, especially at the extremes, with a center that remains stable. Today 21% declare that they make it to the end of the month well vs. 14% in March and that they can even save a little, 37% have enough just the same as in March and 42% do not have enough vs. 49% in March, that is, those with the greatest difficulties fell 7 points.
Tight, but a little less and looking to recover the pleasure. Almost the majority (89%) of consumers had to make a very rational calculation of their consumption throughout the year, with only 11% declaring in March that they had not changed their consumption at all. And although this orientation towards the restriction of what is not fundamental remains a trend, it is observed that the restrictions are loosened a little and more licenses and small tastes are given.
Among the most restricted things were supermarket purchases of non-essential foods (66% in March vs. 55% in December), the purchase of clothing and footwear (55% in March vs. 48% in December ), outings to restaurants (52% in March vs 45% in December), getaways and vacations (47% in March vs 41% in December) and the purchase of personal care products (34% in March vs 27% in December) .
There would be an indication here of recovering something, even partially, from the space of the pleasurable, of indulging in a treat that relieves the tension a little. In fact, 88% of Argentines agree that treating yourself to something from time to time is important for your mood.
Entertainment and that bubble of distraction that does good: Beyond the supermarket and everyday shopping, at the level of cultural consumption, those Argentines who still have the streaming service (Netflix and others) are looking to take advantage of it to “get the most out of the subscription,” while taking advantage of offers in theaters. and they already take “2×1” for granted in cinema. In the groups, consumers generally comment that “they don’t really know how much a movie ticket costs,” since it is a cultural item that is being promoted by different banks, virtual wallets, and others.
More promos and more open to trying something new if it’s cheaper: The need to find the best possible way to buy is deeply rooted in the Argentine consumer. 88% declared in March that if they did not do this, they would not be able to consume (today the number drops to 79% for the total population, although it is still very high and reaches 92% in women and younger people between 18 and 44 years).
In March people told us that they were more attentive than ever to promotions and discounts and this continues to grow (58% vs 62% today, more in women). There is also more openness to trying new brands and more people under 44 years of age and women (40% in March vs. 54% today), more buying in neighborhood stores, butchers, greengrocers (24% in March vs. 30% in December and more among the youngest between 18 and 29 years old), more purchases of refills of household products, both by price and sustainability (16% in March vs. 21%, more in young women), with people Between 30 and 44 years old, those who search the most online for prices today (19% in March vs 25% today).
In other words, we are faced with consumers who search online and offline for the best price, willing to buy directly and try new brands if a minimum quality can be guaranteed, especially in categories that do not imply lower performance or loss of pleasure (i.e. , if with a detergent that I don’t know I’m going to have to clean more, or if I don’t like the taste of what I try or my family doesn’t like it, I don’t buy it or at most, I buy it just once and it doesn’t come back. to buy).
The power of “little data”. Beyond the willingness to try new brands, the opinion and “little tidbit” passed on by friends, family and even merchants is key when choosing. In March, 64% of consumers stated that they only changed brands when recommended by someone they knew, and today that number drops to 58%, perhaps indicating an even greater openness to trying, even without recommendations.
Growth of second and even third brands. The second brands have been growing for several years, to the concern of the first brands that fight them based on the proximity, the trajectory, the prestige that comes with being an A brand. However, the growth trend of B brands does not stop. and in many cases (such as Manaos, Tregar, Zorro, Día chips, Mostaza), they continue to grow and with an increasingly better image for the consumer. At the level of our survey, these data are validated, since we found more purchases of second brands (42% in March vs. 44% today, reaching 46% in the lowest socioeconomic level of those evaluated).
Marks “A”: speak with the facts. When these consumer trends grow and consolidate, even consumers’ imaginations change in relation to what they buy. In fact, we found that 70% state at the country level that they no longer even look at the first brands, but rather look directly at the second or even third brands. This of course reconfigures the landscape of the promises that leading and established brands need to make to their consumers if they want to retain them. People’s request to big brands? An overwhelming 92% considered in March that the way to help consumers in times of need was through promos and discounts and today 95% believe so. That is to say: actions, not words.
In this sense, we observe that brands respond with promos but they also respond by “freezing” prices for three or six months and in some exceptional cases, even lowering the price, without affecting quality.
Less uncertainty and fewer negative emotions. We said that consumption and mood were closely related and to finish this tour of consumer trends 204, it is time to talk about mood. Here we found that in March negative emotions predominated, with a strong percentage for discouragement and, above all, uncertainty. This was the most mentioned emotion, present in 20% of those surveyed, while today it drops significantly to 12%. Something that can be associated with inflation control and is crucial for predictability. And while it is true that fatigue increased a lot (from 8% in March to 19% in December), anger, discouragement and sadness decreased.
Looking at 2025, there is a little more hope: 50% believe that next year will be better, 28% believe it will be the same as this year and 22% believe it will be worse. Numbers that in March gave a more negative outlook, despite everything, at the end of the year they find a better perspective.
It seems that level of consumption, we Argentines are very tired of rowing it, but with some hope and above all, longing to reach cruising speed. With the request for something as simple and as basic as knowing what tomorrow holds for us.
*Ximena Díaz Alarcón is CEO and Co-Founder of Youniversal
by Ximena Díaz Alarcón
