1. Consumer credit in Romania has increased dramatically in recent years, with long-term loans growing six-fold since 2005 and totaling 71.5 billion Lei by the end of 2007, with 78% consisting of long-term loans.
2. While Romanians still spend over half their income on basic needs like food and drinks, durable goods accounted for only 22% of spending in 2008, much lower than in developed countries like France decades ago.
3. During an economic crisis, consumers in developing countries like Romania are expected to adjust consumption across all levels of needs rather than completely cutting out higher levels, in order to still meet basic needs.
2. Brands needs a trade off to cope with the fact that - retailers can offer premium products at very affordable prices - retailers can decide what brands to have on the shelf -retailers can offer their own shopping experience
3. Always steal choice away from competition Redefine your consumers as shoppers Have a great product Retailize your company Shopping for your product is as important as your product Retailization source
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6. Consumer Spending Romania Romanians still spend more than half of their income on basic needs like food and beverage In 2008 durables accounted for only 22% of income spending Data: INSSE Report 2008
7. Consumer Spending France By comparison, the French were allocating the same 22% on durables half a century ago
16. Paying more attention to what he is consuming Swapping segments / shift to a repertoire of brands consumption across different segments Looking for enhanced value /reassurance in the purchases made Restraining the consumption to essentials
17. Shopping trips management Source: Nielsen, Shopping trends in UK, France, Germany – Feb 2009 Decreasing the number of shopping trips They love shopping …. They maintain the number of trips but purchase less Value to the limit !
22. While there is a strong drive for value reassurance in the purchasing behaviour, there are still plenty of things that people do not want to trade and can spend money on. Here is a couple of drivers… What about brands ?
24. 48% of the French declare they keep on buying regularly the brands to which they are really attached. This trend is even more important among the people between 15 and 19 (60%). We still love our rituals Source : CLM BBDO/OMG/Scanblog study
25. We keep up with appearances Source : CLM BBDO/OMG/Scanblog study Despite evidence of frugal behaviour and a growing acceptance of being cheap there are some occasions when we’re absolutely NOT willing to compromise
27. Quality of meals Leisure time Toys – the area with the highest propensity of cost cutting They don’t cut on kids Source : The New York Times, April 2008
28. And we don’t want to cut our precious time A sense of escape - people tend to maintain the spending on family and friends events but most probably trading on the overall arrangements (frequency, location, etc)