How the Spanish shopper is adapting in 2021 - Four consumer profiles emerging
15th March 2021
Roisin O´Sullivan - Market Specialist Spain, Bord Bia
According to findings in a recent InfoRetail article on a new report from NielsenIQ the 2021 consumer is not the same as the consumer of 2020. In fact, Spaniards are adapting their spending to the new reality: where they will spend less, will opt for cheaper and more private label products, but some will still be willing to pay more if the product is of high quality.
The report reveals that 60% of consumers assume they have financial constraints. In the study it breaks down the four groups of consumers according to their spending forecasts for 2021:
- 'Existing Constrained' (15%). They were already watching what they were spending before Covid-19 and this has not changed.
- 'Newly Constrained' (45%). They are experiencing a worsening of their household income/ financial situation and are now consciously watching their spending.
- 'Cautious Insulated' (31%). With limited impact to their income/financial situation, but are watching what they spend a lot more.
- 'Unrestricted Insulated' (9%). Similar or improved financial situation and do not feel they have to watch what they spend.
Almost a third of Spanish consumers say they feel less confident about their income prospects for the next three - six months and this instability is leading to changes in consumption.
In this sense, more than half (54%) of Spaniards claim to have changed their shopping habits since the pandemic appeared and these changes are especially reflected in the search for lower prices and private labels. To improve their budget management, 58% of Spaniards opt for private labels when possible and 55% say they will buy any product on promotion, regardless of the brand. However, there are still brand-loyal consumers, those with fewer financial constraints, who say they will stick with their preferred brand (47%).
NielsenIQ's Consumer Insights Leader Spain & Portugal, Silvia Villaverde explained that "In this new reality, brands are now under much greater scrutiny, and consumers are weighing up which brand attributes really matter to them to justify a place in the shopping basket. The market will have to work hard on ranges to ensure they are meeting consumers' new needs,"
2021, brings a year of change with 84% of Spanish consumers continuing to restructure their spending in 2021 and a quarter assume that, if the country's economic situation or their financial situation worsens, they will spend less on food. However, the vast majority (67%) say they will spend the same. "We are witnessing a consumer polarisation resulting from the pandemic. Manufacturers and retailers have to understand who their consumers are today and identify ways to meet their new needs in order to find growth in a difficult economic environment," Villaverde stresses. She also points out that there is no one-size-fits-all approach, but there are some commonalities among these polarised consumer groups. "For example, 70% are willing to pay more for higher quality, and 65% say they want a greater variety of quality products at a good price," she concludes.