70% of the participants in a survey published by EY Mexico stated that they will reduce expenses on food, beverages and other products at least until April of next year.
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The coronavirus pandemic has had a strong impact on the economy of millions of people. This is demonstrated by a survey published by the firm Ernst & Young México (EY) , specialized in consulting and auditing services. More than half of the participants declared that they plan to spend less on various products in the first quarter of 2021. They also made known their intention to migrate to cheaper brands.
The survey, conducted last October, revealed that 59% of people will cut their spending on food and beverages. They also aim to save on personal care products (47%), cleaning supplies (41%), and pharmacy products (40%).
Among the non-essential expenses that many will cut are alcoholic beverages (87%), perfumes and cosmetics (68%), electronics (65%) and clothing (57%).
“Consumers are having an impact on their wallets. As a result, they are being cautious spending less, they have financed themselves through savings, loans and pawn shops, ” said Ángel Estrada, vice president of Strategy Practices at EY-Parthenon.
– EY México (@EYMexico) December 18, 2020
The same poll found that 4 out of 10 people will opt for cheaper presentations of basic products, at least until April 2021.
“70% of consumers mentioned that they are spending less, and not necessarily that they consume less. There are some that have migrated to cheaper brands. A story that varies by category. “ , Estrada pointed out.
53% of those surveyed said they prefer cheaper versions of cleaning products. Consumers also plan to consume less expensive brands of dairy (44%), personal care products (36%), meats (34%), pharmacy products (35%), non-alcoholic beverages (35%), desserts (33%) ) and alcoholic beverages (23%).
“Part of the behavior in 2021 that we are going to see is the effect we have had, where a large part of consumers have been carrying heavy crockery, and that will have an impact, mainly on the January slope, and will maintain these strategies to preserve the quantities that buy with cheaper brands ” , said the EY-Parthenon executive.
Estrada added that the long-term impact will be interesting. That is, if the consumer will continue to use the most accessible price brands or if they will return to the usual ones once the economy stabilizes.