The survey was conducted among Romanian urban consumers with university and postgraduate studies and above-average incomes.
2022 was a year in which neither air tickets nor holiday packages were in demand. The decline in purchasing power was seen in the amount of money allocated for Easter holidays in 2022. Thus, although 63% said they did not wait for a discount campaign or save up for Easter shopping, the majority of respondents to the EY Romania survey – 65% – said they allocated between RON200 and RON500 in 2022. The majority said they spent 30% more than last year.
“For two years we have been waiting for a return to normality. Just when it seemed we were getting close, we’ve approached a new crisis. And if the global EY Future Consumer Index study showed how, in a period of rising inflation and global turmoil, people around the world have fundamentally rethought the way they live their lives and asked themselves what relationship they really want with consumerism and its values, the EY Romania study also shows us big changes in Romanian consumer behavior. We have moved quite suddenly, I would say, from the shopping frenzy and the euphoria of the large amounts allocated to the holidays at the end of last year – over 1,500 lei, to more restraint in budget allocations. What’s more, Romanians are starting to follow the global trend and to save and invest in education”, said Georgiana Iancu, Partner, Retail and Consumer Products Sector Leader, EY Romania.
The EY Romania study shows that, in the context of the current economy, the most important criteria for making purchasing decisions are: quality – 65.6%, price – 37.3%, sustainability of products – 20%, possibility of home delivery – 19.7%, origin – traditional products rather than imported products – 18.9%, proximity – 12.2%. Only 10% of respondents make their purchasing decision based on brand strength.
When asked to assess the impact of the current situation – geopolitical, health, economic crisis, rising inflation – on their personal situation, most (68%) of the respondents answered “I am trying to save more money now than in the past”, 48.3% that they have managed to reach (some or all) of their financial goals because they saved during the pandemic, while 19% said they find it difficult to pay for essentials such as food, healthcare and housing. 60% of those who completed the survey said their investments had been reduced, 41% said their dividends had been reduced and 22% said they had suffered financial losses.
“Uncertainty about managing rising living costs led 60% of global respondents to want to save more in the future, with half reporting that they had already adopted this behavior. The fact that this trend is also reflected in Romanian consumers, but also that almost a fifth of them are facing financial difficulties, only shows a further drastic decrease in consumer confidence, which pushes the expected recovery in consumption even further back in time”, added Georgiana Iancu.
62% of respondents believe it will take at least 1-2 years before the economic situation caused by rising energy prices and geopolitical conflict no longer affects the way we live our lives, while 18% believe that the geopolitical conflict and economic crisis will last at least 4 to 12 months. Notable is the high percentage of those who say they cannot estimate – 17.2%.
In terms of trends over the next six months, Romanians expect to spend the most money on food, savings and investments, but also on education and experiences – relaxation, entertainment and sport.
Also, when making their shopping decisions, the majority of respondents (between 70-76%) say they will take into account the company’s reputation, will use product reviews, but will also pay attention to the company’s care for its employees. The next most important factors in the decision are the transparency of the company and its community support activities – a statement that is valid for 59.2% of respondents.
Romanians have high expectations from companies: “Company behavior is as important as the products/ services sold”, most consumers think, followed by responsibility in influencing positive change in the world and caring for employees, which EY survey`s respondents believe should come before profit.
The EY Romania survey also highlights the environmental concerns of Romanian consumers. Most were concerned about the high level of waste, as well as water and air pollution. Climate change and human rights are also of concern to a large number of respondents.