Retailers | Mass consumption relaxes its growth: fewer basics and more indulgent products Learn more Infotaller Newsletter

The growth of large consumption, in the course of this year, is negative, due to the effect of the health crisis during 2020, but it gains points compared to the pre-pandemic period. This is how it was presented in the presentation The great consumption in a post-pandemic scenario, carried out by Antonio Khalaf, director of the commercial area of ​​Iri, within the framework of the IX Forum of the Agri-food and Distribution Company.

When analyzing the behavior of mass consumption in 2021, growth has been seen in categories related to leisure and pleasure. The data on sales, since last spring, of cosmetic products such as facial and lip makeup is especially significant.

Indulgence products, such as chocolates, have also maintained a good growth rate this year, in line with the search for moments of pleasure that we found in the pandemic.

On the contrary, basic products (eggs, frozen vegetables and canned tuna, among others) and cleaning products (bleach and disinfectants and laundry detergent) have experienced a negative trend, also as a consequence of the gradual recovery of normality.

The channel specializing in perfumery, in general, has begun to recover. The online channel maintains the weight gained since the start of the pandemic and the large supermarket gains share. In addition, it is precisely this super-large channel that is growing in commercial area.

PROMOTIONAL STRATEGIES ARE BACK

In addition to analyzing the big picture, Khalaf has focused on the realm of promotions. Iri's data reveals that, as normality returns, promotional strategies are getting back on track, although they have not yet reached pre-Covid levels. By channels, it can be seen that the hypermarket is the only one that has recovered these strategies, and even its share exceeds pre-pandemic levels, with a share of promotional sales in value of the manufacturer's brand that reaches 40.6%.

When looking at the categories, perfumery and hygiene is the only one whose promotion share already exceeds pre-pandemic levels due to the efforts of manufacturers to attract consumers. The consumer who takes advantage of the promotions stands out for making larger purchases but less frequently than the rest of the buyers.

Antonio Khalaf's speech has also reviewed the value of in-store promotions. This expert has pointed out four points that must be taken into account to properly measure promotional activity:

1.- Attribution model: determine the real contribution of the promotional activity to the increase in sales.

2.- Pressure and effectiveness: the success of a promotion is determined by the relationship between the volume put up for sale (pressure) and the increase generated (effectiveness).

3.- Channels: this relationship of pressure and effectiveness varies according to the channels in which the promotion takes place.

4.- Depth level: the study must be done at the lowest possible level (brand or SKU) since the deeper we go into the hierarchy and the channel, the greater the robustness of the analysis.

FUTURE PERSPECTIVES

Regarding future trends and prospects, Khalaf recalled that the pandemic has brought about different influences on consumption, such as an increase in teleworking, greater consumer confidence, an increase in the unemployment rate and a lower spent.

In addition, it has been observed that, as the restrictions have been relaxed, the consumer makes smaller baskets and goes to the store more times, but without yet having reached pre-Covid levels (they go to the store less than before the start of the pandemic, but more is spent, albeit with a notable decrease compared to the level during the start of the restrictions).