Thursday, May 04, 2017

42% have traded for cheaper brand

Two straight years of recession have changed the shape of the Brazilian food items consumed, hygiene and cleaning products. In 2016, 42% of households have traded expensive brands for cheaper and that was the number one output pointed to by consumers to adapt consumption to the crisis.
The data are part of the consumer panel research of the consultancy Nielsen, presented yesterday at the 33rd edition of the São Paulo supermarket Association, the Apas Show. The consultancy visit fortnightly 8200 homes in the country.
"The share of households that switched to brand more than doubled in two years," said Daniela Toledo, responsible for Nielsen''s retail area. In 2014, when the Country went into recession, 20% of households switched brand. She also pointed out that, in 2014, when this question was raised, this was the 6th option used to save.
In addition to the large portion which replaced marks, in 2016, 22% of Brazilians resisted: bought less, but retained the favorite brands. 7% also reduced food away from home and leisure and 5% decreased items of clothing.
Balance. This gym in consumption led to an unprecedented result. After two years of families spend, on average, more of their income in 2016 the expenses were balanced with the average income of R $3,118. To reach this level in 2016 the familiar average income fell 12%, 16% and the spending.
The stronger adjustment occurred in the lower income strata. Research shows that the class C, which boosted the consumption in recent years, reduced in 2016 in 1.2% spending relative to income. Classes D and e conducted a 0.8 percent cut in expenditure compared to the budget on the same basis of comparison. Only the higher income class (A/B) continued spending more than you earn. In General, the average income returned to the level of five years ago and spending fell more than inflation. In the two previous years, families spent more than they had, so if former borrowers.
Daniela said the adjustment left the consumer more judicious in purchasing. Second the Apas, the actual revenue of the sector expected to grow 1.5 percent this year, although it fell 1.5% in the first quarter.
O Estado de S. Paulo - 03/05/2017 News Item translated automatically
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