Parents in Greece pay around 32% more first baby milk – the same product of a particular multinational company – compared to parents in Germany, despite the fact that in Greece GDP per capita in terms of purchasing power is 32% lower than the European average, and in Germany it is 17% higher than the average European term. In fact, these are not pharmacy prices, but prices Supermarket.

According to a price study conducted by Kathimerini in the online stores of the leading supermarket chains in Greece and four other countries (Germany, France, Spain and Cyprus), it turns out that the price per kilogram of the well-known baby milk in Greece is 31.20 euros, and in Germany – 23.74 euros. , in France €23.24, in Cyprus €27.50 and in Spain €29.25.

Another product that is also associated with raising babies is diapers. The unit price in Greece is more than twice as high as in Germany – €0.56 in Greece versus €0.23 in Germany – and higher than in the other four countries.

The same can be said for laundry detergents, a category that has, in fact, gained attention recently. Competition Commission. The agency launched a price investigation by comparing prices in Greece and other European countries for a range of products (powder and capsules) from Unilever and P&G, the multinationals that have the highest market share in the category in question in the category in question. Greek market. EA’s price survey showed that the products of the above two companies are sold in Greece by 113.92%, which is 361% more expensive compared to the cheapest EU country. this is Ireland, as well as cheap countries – depending on purchasing power – Sweden and Germany. According to absolutely reliable information “Kathimerini”, E.A. is also conducting other price comparison studies on a range of products, the results of which are expected in the summer.

Three other examples are of particular interest: two on personal care and one on food. A bubble bath from a large multinational corporation is sold in Greece for 8.77 euros per liter, which is the lowest price – by a small margin, of course – among the five countries studied. On the other hand, in Greece, the price of toothpaste, also a large transnational corporation, is the second largest after Cyprus: 3.34 euros (pack of 75 ml) in Greece against 4.18 euros in Cyprus. In Germany it costs less than 1 euro, in France it costs 2.15 euros and in Spain it costs 1.99 euros.

On the other hand, the biscuits of the multinational giant, which is one of the most famous brands in the world, are sold relatively cheaply in Greece (€8.96/kg) and €11.31/kg in Germany.

What finally happens to multinational corporations and why do they often sell their products in Greece for more than even in countries where consumers have higher purchasing power? And why, on the other hand, are there cases when their prices are relatively low?

First, in some European countries there are factories of multinational corporations for the production of basic consumer goods, much more than in Greece.

Secondly, the size of the Greek market is de facto small, which, on the one hand, does not contribute to the existence of a very low rate of return, and, on the other hand, does not create an incentive for high price competition.

Third, where private labels are widespread, multinational corporations are forced to cut prices in order not to lose market share. Shares of private labels are low in diapers, infant formula, toothpaste and laundry detergent. In bubble bath, on the other hand, the share of private labels is starting to increase significantly, while there is competition from Greek companies. In the case of biscuits, Greek branded products predominate, which means that the multinational corporation has an incentive to offer its own products at more competitive prices.

Fourth, in Greece, suppliers and retailers still stock the majority of products, especially personal care and home care products, because this is how they have been educating consumers over the years, especially in the face of declining demand due to for inflation they can not stop. The result: they maintain high nominal prices to be on the shelf half the time at a discounted price.

Fifth, in other countries, such as Germany and Spain, organized retail it is largely controlled by discount chains (discounters), as a result of which they also reduce the prices of brands.

In addition, VAT is a determining factor for price differences for similar products. In Greece, despite the request of consumers and market participants to reduce rates even on basic foodstuffs, the government shied away from it, fearing financial costs. Thus, VAT rates in Greece remained at the level of 13% and 24%, and only in this respect the country resembles “southern Denmark”.

However, there are two myths about the reasons for the high cost of products of transnational corporations in Greece: firstly, in Greece, products are sold more expensively because they are far from production centers. From the studies of E.A. for detergents, there appears to be a large price difference between Greece and Cyprus (prices are cheaper in Cyprus), although additional costs are likely to be incurred to transport the product to Cyprus due to the geographic location.

Secondly, in Greece, products are more expensive due to small packaging. Again, from the study of E.A. it turned out that Greece is included in the group of countries with high prices, regardless of the size of the package. In fact, the smaller the package, the higher the price per piece (for capsules). In a pack of 14 pieces, the price per piece is 0.66 euros, and in a pack of 54 pieces it is 0.44 euros. In other countries, on the contrary, such as in the Netherlands, the price per piece is not differentiated.