“In the first three months of this year, consumption rose by 3% amid 4.3% volume growth. Figures show we had deflation in the same period of last year, so that the advance was supported only by the purchase of a bigger number of products,” says Raluca Raschip, consumer goods & retail director at GfK Romania.
She says that 2013 witnessed a similar consumption increase, of 3%, but the increase came both on some 2% volume growth and on price hikes. In the previous years, 2011-2012, any increase was based only on rising prices, a sign Romanians were wary of buying more products.
“Moreover, buyers focused on products with ever falling prices. This year, though (in the first quarter i.e.), no further oscillations were noticed, so that Romanians focused neither on cheaper, nor on more expensive products”.
According to GfK data, in the first quarter, food item consumption rose by 5%, consumption of fruit and vegetables added 3%, while beverage consumption advanced by 1%. At the opposite end, sales of personal care products entered a downward trend.
“The most significant increases were posted by categories such as chocolate (5%), coffee (5%), wafers (10%) and cookies (12%). These are all indulgence categories”.
During crisis years, Romanian cut down on these purchases, particularly buying strictly needed products and low-price ones. Thus, a genuine price war started. According to GfK data, purchases of goods “on promotion” surged by 70% in the first three months of this year, when one in six lei went to a product on offer.
“Most promotions were carried out by hypermarkets. Thus, almost one quarter of total sales came from products on offer. Next came cash&carry stores (23%) and discount stores (22%)”.
Private labels also saw strong increases during the crisis. These products gained ground each year. Thus, they went from a 1% weight around a decade ago to 10% in the FMCG market in the first three months of this year, according to GfK data.
(English version by Catalina Apostoiu)