Economic situation due to the pandemic, has forced citizens to moderate appetite: they began to save on food. As shown by a Nielsen study, consumers in the mass, now choose a simple and cheap food. In the diet of the average consumer is now dominated by bread, potatoes and grains, replacing meat, fruit, seafood. Experts predict a further consolidation of this trend on the background of falling incomes: consumption is reduced, is displaced expensive cheap.
According to the global Nielsen, tracking consumption of consumer goods, the share of low price segment in food and goods was made in may of 17.7% – 0.8 percentage points above the average. While the share of products of the premium segment, on the contrary, decreased with the average of 35.8% to 34.4% in may. Most notably this has touched meat, fruit juices, water, tea, pasta. If earlier in the low price segment, the proportion of pasta was 18.7%, but now it increased to 22.8%, the share of chocolates in bulk rose from 14% to 15.7%, mayonnaise – from 7.3% to 9.5%.
the findings of this study are linked with others. In particular, the portal “Work.Roux,” recently discovered that 35% of Russians have less to spend on products, 27% did not notice changes in the cost of food, and 38% of the increased cost of food. Of those who saves on food, 42% of respondents have reduced their costs by more than half, 27% for the quarter, and only 8% noted a minor difference. The majority of respondents (72%) reported that they were more likely to cook at home, and 64% of citizens plan to take food from home to work after the end of the pandemic.
In may, the average Russian family spent 57,6 thousand (down 13.5% compared to may 2019). Of these, the cost of products accounted for 42%, or 23.9 per thousand.
the Conclusion of these numerous statistical data suggests the following: isolation came to an end, what can be said about the problems of the population. Russians are cutting back on food, because everything is already saved: all the financial “safety cushion” was used, and visible support from the States remaining without a job and savings of the citizens did not wait. When restored consumer demand and people will stop to save on food? With this question we turned to the experts.
Alex KRICHEVSKY, expert of the Academy of management Finance and investment:
“the Trend is to reduce spending, including on food, which is quite logical – people were left without work for two months. Targeted assistance to families with children could not solve all financial problems, so the people had to save on basic needs, to go to cheaper stores and to say goodbye to the departments of ready-to-use Proproducts and particular.
However, people have a week after the release of quarantine beginning to get the impression that it actually was not, so quickly, everything started to recover. That is, of life was actually torn two months, and there’s a certain trend a fairly fast recovery and return of the welfare of citizens at levels relatively close to last year. But the problem of unemployment, the percent of which is already in double digits, yet going nowhere. The current situation will cause the Russians much more careful with income and to create your own “wealth Fund”, in order not to depend on the state and have some savings for a “rainy day” or, as happened in the spring, a month or two.
Consumer demand is unlikely to recover before 2022. See the trend on the rising cost of the food basket, which gained about 5% during the pandemic, the number of unemployed will decline only towards the end of the year. In General, at the moment the situation is definitely sad.”
Pavel SIGAL, first Vice-President “Support of Russia”:
“Consumer demand recovers together with the income of the population. While they, according to forecasts of Ministry of economic development will decline (average for the year will be minus 6%), and demand will recover next year. The dynamics of consumer spending suggests that Russian citizens will continue to save and postpone indefinitely expensive purchases and tours. This happens not only because of declining revenues due to the regime self-isolation and reduction of employment. There is a psychological moment – in a situation of uncertainty (a crisis is exactly what is perceived by the people – it is not clear what to expect next), people tend to cut costs and set aside funds “just in case”. When citizens ‘ understanding that the acute phase of crisis has passed, begin to recover and demand – the Russians will understand that it is possible to spend money more freely, because tomorrow they will not go without income.”