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Inflation reaches 9.1 percent year-on-year in the United States.
In Mexico, losses in the economy of up to 43 and 70 percent were recorded.
The basic basket has increased by up to 25 percent in 2022, in Mexico.
The strong economic crisis in the world has been responsible for the new consumer trends. Before that, consumers have changed their shopping preferences in the supermarket, where the percentage of private labels has increased thanks to inflation.
There are many terms in the marketing industry, one of those being “private labels”, which are a line of generic products that the retailer sells under their name. That is, these goods are usually marketed under the logo of a commercial establishment.
If there is something that any consumer is clear about, even if they do not know the term, it is that white brands, in almost all cases, are cheaper than the rest of those that we find in the supermarket. It is worth mentioning that white label products do not have the reputation of a prestigious firm, which invests in large advertising campaigns, as well as in packaging, packages and promotions that are also expensive.
Private label products increase their sales due to inflation
It is no secret to anyone that the world is suffering a strong economic crisis, where the changes of the Covid-19 pandemic, added to the war between Ukraine and Russia and supply problems in many industries.
The world economy is experiencing unprecedented inflation so far this century and according to the April 2022 forecasts of the International Monetary Fund (IMF), the inflation rate could average 7.4 percent globally this year. Emerging and developing economies will be the hardest hit by this widespread price increase, as they are expected to post 8.7 percent inflation.
In this sense, inflation in the United States is getting out of control, where it reached a new peak since the 1980s, which this time is already close to double digits. According to data from the consumer price index (CPI), the main tool for measuring inflation, They show an increase of 9.1 percent in the month of June compared to the previous year, the fastest annual pace since 1981.
For its part, in Mexico there has also been a strong increase in food, where a general inflation of 8.15 percent is registered, according to the National Consumer Price Index.
Given this, the prices of basic products have risen uncontrollably, and private label food purchases have increased accordingly, so it has reached an all-time high, according to the Nielsen IQ study.
The study highlights that food contributed 49.4 percent of the value of the purchase in June, so consumers have changed their purchasing preferences due to inflation.
The consultant reports that the percentage of white brands in the consumer goods market is 41.8 percent in general, including food, pharmacy and perfumery.
Also, before the pandemic, white brands represented 25 percent of the shopping basket.
“Consumers are now focused on price reductions and promotions rather than the quantity in the shopping cart. After the pandemic, consumers tend to opt for simpler shopping baskets and are less interested in unique products, ”says the report.
As a result, according to Nielsen IQ, retail brands experienced a 17.1 percent increase in spending, compared to 7.9 percent for manufacturer brands.
Specialists explain that consumers react to the crisis by cutting spending and opting for cheaper brands or products.
The private label has been gaining market share month after month as a result of this trend.
For his part, Pedro Reig, director of Asucova, affirms that supermarkets are offering more private label products.
In conclusion, the pandemic completely changed consumer tastes, so any situation that affects the world will continue to renew these new trends.
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