1. resilience: The consumer is resilient and even more so, he is optimistic about the economic situation of the country, as well as that of the household. As of April 2020, in which the consumer confidence index fell 10 points due to the spread of the virus and the confinement measures, the consumer confidence index shows a consistently positive trend.
As an example, just compare the month of December 2021 with the same month of 2019 pre-pandemic. The consumer confidence indicator is above, which means that the consumer has greater confidence today in the economic situation of the country and of his household than he had before the arrival of COVID-19.
two. Adaptation: The consumer changed his habits to face the pandemic two years ago; these still prevail. Higher purchase tickets (+12.8% 2021 vs 2020) and fewer purchase trips (-4.2% 2021 vs 2020) have been the general strategy of the population to face confinement, inflation, and problems in the chains global supply.
In the current environment, unique in its kind derived from the change of habits due to confinement, the shopper’s response to the crisis has been the opposite of the previous ones. Despite the fact that the majority of the population is back on the streets, today the strategy has been, and continues to be, to visit the point of sale less often so that the constant disbursements do not impact the household economy.
Consumption outside the home, typically known as “on the go”, remains depressed because, although proximity channels are activated, the moment and occasion of consumption continue to prevail inside the home. Thus, the modern channel and e-commerce have been the protagonists in the purchase dynamics due to their promotional role and portfolio breadth, which led them to win in the different strata of the population.
3. Choice: The increase in prices forces households – especially those at the base of the pyramid – to prioritize basic necessities, opting for bulk purchases and “average” and “own” brands.
In this sense, the pandemic hit traditional stores, a channel that has not managed to recover market share compared to bodegas. Although it reaches the entire population, it has a primarily low profile. On the other hand, the Price Club incorporated a significant number of affiliates, mainly from medium and high levels, reaching a record penetration of 31.7 points in 2021 thanks to its offer of products with high perceived value, exclusive catalog and extra-large presentations.
A study generated with consumers reports that, derived from increases in prices and inflation in the country, 64% declared that they were making changes in their purchasing habits to deal with these increases. It stands out that 31% look for cheap brands, 29% look for promotions and 18% sacrifice certain families of products such as, for example, beauty products.
It is important to underline that, in households that declared no changes in their habits, high SELs stand out, while in those that declare changes, families with more than five members stand out, as well as middle and low strata. Undoubtedly, differences in household income levels and lifestyles mark a clear divide among consumers.