​Most Romanians spent less on food in 2022 and reduced their savings and investments, according to the latest Future Consumer Index study conducted by experts EY Romania in early December 2022. The questionnaire aims at Romanians’ perception of the new context of the current year’s economic performance compared to previous years, and especially of changes, if any, in their consumption habits.

The context of political and economic events that marked the year 2022, namely the increase in energy and fuel prices caused by the Russian-Ukrainian war, which was superimposed on the economic consequences of the pandemic year (2020) and the slowdown in economic growth compared to previous years (2022 compared to 2021) could cause partial or complete changes both in individual consumption segments, products and services, and in general.

Georgiana Iancu, Partner, Coordinator of the Indirect Tax Practice and Head of the Retail and Consumer Goods Sector, EY Romania: “In 2022, the concerns and pressures caused by the pandemic changed to those related to the war in Ukraine, which inevitably affected consumer behavior. We have seen several changes, including: restrictions on some spending – for example, those allocated to entertainment, reductions in the amount of savings and investments, or those aimed at education and vocational training.”

On the other hand, the questions aimed to identify the aspects that concern Romanian consumers more in this new landscape, as well as their attitudes towards new social trends, such as sustainability or corporate social responsibility.

The most interesting aspect, at least compared to previous years, that the EY study reveals is the increased concern about the financial future of individuals and their families, at least through the prism of the answers about the amount of allocated amounts in different categories, over the next six months.

According to the survey results, respondents indicated the largest amounts, from 500 to 1,000 lei, as spending on food (of which 74% vs. 80% in 2021), savings and investments (59%, compared to 68% in 2021), education and training – 27% (compared to 34% in 2021).

The first three benefits are followed by spending on clothes and shoes – 25%, closely related to entertainment and recreation – 24%. Only 14% of respondents will spend such amounts on hygiene and personal care, and only 12% will spend more than 100 euros per month on sports in the next six months.

Consumer habits and determinants

Among the aspects that influence the purchase process, it was named first exorbitant prices – 22%, then increase in electricity and gas prices – 19% and wage stagnation and rising inflation – 18%.

A significant part of the respondents claim that in order to calibrate their consumption, they receive information from the media or from the statements of decision-makers – politicians or authorities, which can sometimes distort economic reality.

Wages, for example, rose about 12% in the first nine months of this year, according to the INS, but as prices rose, the consensus is that they have stagnated.

Next in order, as alarming factors, the price increase of food and household necessities – 18%, the economic instability of the country – 11%, market fluctuations (European/world) due to the war in Ukraine. – 11%.

Price changes for each of the main categories indicated in the survey – fuel, food, energy, purchase and rental of housing, household appliances, medicines, etc., for the last 3-4 months of the current year, see most respondents are much more. But given the general increase in prices for different product categories, respondents were asked to indicate how they fared in this overall picture of price increases for all major product categories. The majority stated this they didn’t change anything neither for fuel consumption (66%), nor for energy sources (51%), nor for basic food products (50%), nor for buying/renting real estate (72%). Some of them said that they did buy cheaper products and bought less, and an even smaller part said that they stopped these purchases, but we are talking about a marginal percentage.

“As the results of the EY survey show, record inflation is, of course, the main concern of Romanians, so wage increases were not perceived as sufficient to balance the effects of accelerated price increases in several important consumer segments – food, energy. , fuel and others”, says Georgiana Janku.

However, it is interesting to note some important changes in consumer behavior that were also reported by the Romanian respondents, the largest percentage of whom give up eating out and spend more time at home. So, to the question “what changes do you notice in your consumer behavior?”, 27% said that they cook more at home, and 22%that I spend more time at home. The convenience offered by online platforms and stores is well used, with 20% of respondents buying more products through online platforms and only 14%I say thatI physically go shopping. The ratio between the two trade segments seems somewhat balanced, but the growth trend of e-commerce is obvious, and there is no 100 percent return to traditional trade.

Sustainability and everyone’s efforts for a sustainable life

In terms of sustainability, some important changes in behavior are noted, at least with regard to the use of means of transport, both private and shared. For example, some respondents said they use public transport or bicycles more – 19%, others use sustainable alternatives for products they have bought in the past – 18%, and some even say they buy products based on the impact that they have 18% on the environment. On the other hand, there are also people who try to use the car as little as possible and fly less – 16% or, simply, are generally concerned about reducing carbon emissions – 14% – and make efforts to do so.

However, Romanians name the main aspects that discourage them when they intend to buy organic products high prices of them – 19% or deceptive marketing – 16%.

The numbers recorded in these responses can provide food for thought for companies – especially large food and staple food manufacturers and retailers – regarding their perception and image in the minds of consumers. It is clear that their propensity to value and consume certain products and services increases not only through the prism of price and quality, but also by taking into account the degree of transparency and details about the company and its products.. When asked if they also consider behavior when making a purchase decisioncompanies, the responses reveal concerns about other aspects of everyday life that until yesterday were almost absent from discussions on this topic. It is aboutconcern for the environment and sustainable practices (68%), consumer feedback (64%), concern for employees (64%), followed by company reputation (62%) and transparency in everything companies do (61%) as important elements respondents in the purchase decision.

Profit maximization was the main aspect that would encourage consumers to buy less, while product advertising was indifferent to the majority of respondents (69%), which could be a real wake-up call for both manufacturers and retailers. The behavior of companies is as important as the products – 44% of respondents agreed, they are obliged to make positive changes in the world – 43%, they must put social impact and employees above profit – 33%. On the other hand, they can have a positive impact on society, 37% believe.

Romanians seem to be concerned about some environmental impact issues: Water pollution – 44%, air pollution – 43%, climate change and human rights – equally – 40% Plastic waste – 38%. It is interesting to note that more than a fifth of the respondents are concerned about the inequality of wealth in the world – 22%, and all concerns are characteristic of everyday life in Romania.

A mirage of Black Friday discounts and promotions

To questions about Black Friday or other discount campaigns (Cyber ​​Monday, Single Day, etc.) withthis year, 61% said they did not shop.

Compared to last year, Romanians spent less – 47%. Most of them (66%) said that they did not wait for a discount promotion to buy gifts Christmas.

If last year the percentage of respondents who followed online campaigns was 17%, then this year, with the end of the pandemic, it decreased to 9.4%, and the largest mass of respondents (36%) said that they make purchases both online and and like in stores. Most didn’t save up to make those holiday purchases (59%).

When asked about the amount of spending allocated to holiday shopping this year, the survey results are almost identical. Thus, 27% of respondents spend amounts from 500 to 999 lei, 27% spend amounts from 1,000 to 1,500 lei, and 29% spend more than 1,500 lei. Only 8.5% of respondents will spend small amounts, from 400 to 499 lei.

A whopping 95% of respondents said they did not buy cheap plane tickets or vacations on Black Friday or during other discount campaigns. 62% do not expect promotions/discounts for the purchase of air tickets/tours.