Growing demand for cheaper brands in supermarkets, says Abras

With an accumulated inflation of 9.12% in food in the last 12 months, according to the IBGE, the rise in prices has been causing a change in the habits of Brazilians and, consequently, readjustments in supermarkets.

While consumers exchange traditional brands for cheaper ones, establishments are betting on promotions, their own products and changes to the shelves to meet the new reality.

Data from the Brazilian Association of Supermarkets (Abras) show that the replacement of brands happens especially in commodities such as rice, beans, sugar, oil and coffee.

In the case of oil, the share of revenue from “lowprice” products (up to 80% of the average price) rose from 54.90% to 59.40% in the comparison between the first two months of this year and the same period in 2021. The revenue from premium goods (from 120% the average price) fell from 40.90% to 36.20%.

The executive superintendent of the Association of Supermarkets of the State of Rio de Janeiro (Asserj), Keila Prates, points out that families still adapt to changes in the budget.

“From the pandemic to here, at the beginning, we noticed an increase in stocking. Then, with the advent of Emergency Aid, consumption increased a lot, but it was also shared with other expenses. This year, we are noticing a change in brands, with consumers opting for those that were not so requested before”, he told CNN.

One of the consequences of the consumer movement is the creation of own brands by supermarkets to expand the offer of low-cost products, according to Keila Prates.

This scenario led, for example, to the expansion of the number of rice brands last year, which reached 101, as Abras points out.

In addition to grains, the hygiene, cleaning and beauty sectors register the phenomenon of substitution, according to a survey by the consultancy Kantar about the year 2021. One of the changes seen, for example, was the greater demand from customers for large packages of fabric softeners, water sanitary and bleach.

The survey also pointed out that buyers have also been saving on the choice of detergent, degreaser, sponge, deodorant, makeup, shampoo and razor blades.

On the other hand, consumers have opted for smaller packages in the sweets grocery sector, such as chocolates, where the preference is still for more expensive brands. In addition to it, only the pet sector, with the sale of dog and cat feed, recorded growth in 2021.

The Kantar survey also points out other changes in consumption during 2021. Products such as fillet and other types of beef lost space, while rice, beans, salad and chicken gained prominence.

According to the executive superintendent of the Association of Supermarkets of the State of Rio de Janeiro (Asserj), Keila Prates, the news is a result of inflation and unemployment.

“Inflation, especially in relation to commodities, has a lot of impact. Fuels also end up raising prices on the shelves as a last resort, because we need the means of transport,” he said.

“Unemployment also impacts. We usually say that our sector is not an island, we need the other sectors to be acting, because we do not live without the performance of the economy as a whole”, she added.

Supermarkets are still awaiting the impacts of the war in Ukraine, such as the rise in diesel and wheat. The expectation is that the sector will have an overview of the effects in the next 15 days.

Source: CNN Brasil

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