The Global Economic Crisis: The Impact On Consumer Attitudes & Behaviors In Italy:

The Global Economic Crisis: The Impact On Consumer Attitudes & Behaviors In Italy

Published Date: June 2009

Published By: Datamonitor

Page Count: 13

Order Code: R313-52354

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Overview: Catalyst; Summary; Table of Contents; Table of figures; Table of tables
THE FUTURE DECODED: INTRODUCTION: Understanding how 'recessionary mindsets' influence Italians' attitudes towards and actual consumption is vital; The 'recessionary mindset' of Italian consumers is reflected by the widespread belief that they are in a recession; The economic downturn has impacted on the lifestyles of a growing majority of Italian consumers; Key takeouts and implications: a 'recessionary mindset' has been increasingly borne out with widespread recessionary impacts on Italians' lifestyles; TREND: Stagnating consumer confidence levels are mirrored by a widely-held negative outlook among Italian consumers; Italians are highly negative about the country's direction which is impacting satisfaction with their quality of life; Key takeouts and implications: Italians' views towards the direction of the country have been strongly negative, a view also mirrored in their feelings about quality of life; TREND: Italian consumers' confidence in their financial security is weak and they are being more careful with money as a consequence; Satisfaction with one's financial situation is low among Italian consumers; Perceptions about the economy, job security, financial status and the housing market in Italy have all worsened and there is only limited optimism for the six months ahead; Italians are managing their finances more closely with many struggling to pay the bills; Majorities of Italians are making efforts to become less reliant on credit and to save more; Key takeouts and implications: Italians are very pessimistic about their financial situation and there is little optimism of any improvement coming as 2009 progresses; INSIGHT: The global economic crisis has negatively impacted on the emotional wellbeing of Italians driving stress levels up and personal happiness down; Stress levels have all been negatively impacted during the financial downturn; Work-life balance has also worsened in combination with the downturn; The happiness levels of Italians have declined in line with the global economic crisis and are below the international average; Key takeouts and implications: Elevation of tiredness and stress levels due the recession imply opportunities for marketers who can help bring relaxation and escapism; INSIGHT: Italian consumers have become increasingly price and value conscious following the global economic downturn; Italian consumers are becoming more value conscious and therefore looking to save money when buying groceries; Price and value consciousness heavily influences where Italian consumers do their grocery shopping and how they shop, but quality is still a leading consideration; Key takeouts and implications: value consciousness of Italians has intensified affecting where they grocery shop but the CPG industry must not confuse 'value-for-money' with 'cheap'; INSIGHT: Brand loyalties are also weakening as Italians revise their brand choices and increasingly look to private label; Many Italian consumers are finding it necessary to give up some of their favorite brands and make more 'considered', value-driven purchase choices; Private labels are becoming more attractive to shoppers in the downturn although penetration is more limited in Italy; Key takeouts and implications: the general value consciousness of Italians, combined with their more measured consumption behaviors could create an optimal platform for private label growth if greater regional/national scale can be realised by retailers; INSIGHT: Italian consumers are embracing money saving tactics when it comes to food and non-alcoholic beverage purchases and preparation; Italian consumers are adopting a variety of responses to cut back on food and beverage expenditures; Many Italians view private label products as being of comparable quality to main branded equivalents although this view varies by category; Key takeouts and implications: Italians' cut-backs on eating out and a desire to scratch cook at home offers growing opportunities for grocery retailers, private label and challenges foodservice; INSIGHT: The significant majority of Italians' personal care regimes and related product choices have been 'recession resistant'; Two-thirds of Italian consumers are committed to looking their best in day-to-day life; Price and value conscious personal care/beauty shoppers in Italy remain quality focused and have not made significant changes to their personal care consumption in order to save money; Italians are showing growing interest in private label personal care products; Key takeouts and implications: Italians' health and beauty regimes are well-established and largely recession resistant; INSIGHT: Italians' alcohol consumption patterns and preferences have not changed significantly during the downturn; Italian drinkers are careful about how much they spend on alcohol, but do not perceive that they have been making significant reductions in the amount they consume; Italians consumers show marginally more value consciousness in their at-home alcoholic beverage choices than their out-of-home choices; Limited private label alcohol penetration in Italy has led to uncertainty about comparative quality against branded equivalents; Italian drinkers show lesser concern for brand image but habit, price and brand name are more important; Key takeouts and implications: alcoholic drinks have a high degree of 'recession resistance' among Italians; INSIGHT: Italians' household care buying preferences are heavily shaped by price consciousness irrespective of an economic downturn; Price led value is still the most influential factor for Italians' household and laundry care purchases but preferences do reflect other important influences; The private label household care market in Italy is very limited but potentially lucrative given consumers' concern for value; Key takeouts and implications: the majority of Italians associate hygiene and cleanliness with wellbeing, making them somewhat quality conscious
ACTION POINTS: ACTION: Adopt a relentless approach to delivering and communicating better value-for-money than the competition; Actively demonstrate value-for-money by re-appraising marketing initiatives, including slogans; Ensure that the value gains for shoppers are instantaneous; Focus on quality to maintain differentiation and prove to consumers that quality really matters; Evaluate and adapt cost structures so that it is feasible to offer value-for-money solutions
APPENDIX: Methodology; Further reading and references; Ask the analyst; Datamonitor consulting; Disclaimer
List of Tables: Table 1: Consumer survey: level of satisfaction with the general direction of how things are going and quality of life, in Italy (compared with the global average), 2009; Table 2: Consumer survey: satisfaction with current financial situation and importance attached to wealth/ income and having finances in good order, in Italy (compared with the global average), 2009; Table 3: Consumer survey: perceptions of whether broader economic conditions, household's financial situation, job security/confidence and housing market confidence had improved or worsened in the six month previous and how each might change in the proceeding six months, in Italy, 2009; Table 4: Consumer survey: propensity to feel tense and the extent to which perceived levels of stress have changed in the last six months and are expected to change in the next six months, in Italy, 2008-09; Table 5: Consumer survey: propensity to feel very tired and the extent to which perceived work-life balance has changed in the last six months and are expected to change in the next six months, in Italy; Table 6: Consumer survey: happiness levels and the extent to which perceived happiness has changed in the last six months and are expected to change in the next six months, in Italy, 2008-09; Table 7: Consumer survey: changing value-consciousness and desire to save money when buying groceries among Italian shoppers, 2009; Table 8: Consumer survey: changing efforts being made to use coupons, change grocery store choice to save money, embrace more disciplined shopping and gather and utilize store price information, among Italian shoppers, April 2008-April 2009; Table 9: Consumer survey: the relative cost/value and quality consciousness of Italians and global consumers overall when purchasing food and beverage products in 2008; Table 10: Consumer survey: the extent to which Italian consumers are making effort to save money by adopting various food and drinks consumption and preparation approaches, 2008-09; Table 11: Consumer survey: perception about the relative superiority or inferiority of private labels versus well known or market leading famous brands in food, soft drinks and hot drinks, in Italy, 2009; Table 12: Private label food penetration and spend (US$ millions) in Italy, 2002-2012; Table 13: Private label non-alcoholic beverage penetration and spend (US$ millions) in Italy, 2002-2012; Table 14: Consumer survey: the importance attached to looking one's best in day-to-day life, the pressure to look good, and satisfaction with physical attractiveness/ appearance, among Italian consumers, 2008 and 2009; Table 15: Consumer survey: the extent to which consumers are making an effort to save money by using spas or salons less often, in Italy, 2008-09; Table 16: Consumer survey: attempts made by Italians to change their personal care/beauty habits in order to save money, by product category, 2008-09; Table 17: Private label personal care penetration and spend (US$ millions) in Italy, 2002-2012; Table 18: Consumer survey: perception about the relative superiority or inferiority of private labels versus well known or market leading famous brands for grooming/ beauty products, and agreement that such products are good alternatives to well known or market leading famous brands, in Italy, 2009; Table 19: Consumer survey: attentiveness towards the amount of money spent on alcohol and the degree to which alcoholic beverage consumers in Italy have cut down on the overall amount of alcohol bought/consumed in 2008-09; Table 20: Total private label alcoholic beverage penetration and spend ($ millions) in Italy, 2002-2012; Table 21: Consumer survey: the changing degree to which household and laundry care consumers in Italy made product choices with value or cost in mind, 2008; Table 22: Consumer survey: Italian attitudes towards doing housework, 2008; Table 23: Private label household care penetration and spend ($m) in Italy, 2002-2012; Table 24: Consumer survey: perception about the relative superiority or inferiority of private labels versus well known or market leading famous brands for household cleaning/laundry products, and how often such products are purchased to save money, in Italy, 2009
List of Figures: Figure 1: Datamonitor's Recession and Recovery portal will allow industry players to continually identify emerging opportunities and track what is happening in the Italian economy as it develops; Figure 2: More than four-fifths of Italian consumers believe their country to be in recession, with over a third strongly agreeing; Figure 3: Italian consumers are increasingly seeing their lifestyles change due to the recession; Figure 4: From a personal perspective, European and US individuals generally looked at 2008 negatively; Figure 5: Italian consumers are highly skeptical about the direction their country is taking and are well below the global average for satisfaction with their quality of life; Figure 6: Nearly half of Italians are dissatisfied with their current financial situation; Figure 7: Eurobarometer reveals Italians see the GEC having more serious consequences on the macro-economic level than on their personal situation; Figure 8: Italian consumers are more negative about the economy at large than about their own financial situation; Figure 9: Only a quarter of Italians expect economic conditions to improve in the next six months; Figure 10: Italian consumers are managing their finances more closely while a third of individuals report difficulties in paying all the bills; Figure 11: Italians are becoming more averse to sustaining their lifestyles through use of credit but have not matched that with added commitment to saving money; Figure 12: The GEC has increased tension and stress levels for the majority of Italians in the last six months; Figure 13: Italians exhibit high but below average levels of fatigue, in the period October 2008 to April 2009; Figure 14: Italians' levels of happiness are below the international average, influenced by the impact of the global economic crisis on their lives; Figure 15: The vast majority of Italian consumers now wonder if they are getting value-for-money due to the downturn; Figure 16: Italian consumers' decisions over where they purchase their groceries are more influenced by product quality than by price or habit; Figure 17: Price and value consciousness is influencing where Italian consumers do their grocery shopping and how they shop; Figure 18: As the downturn has intensified, so too has the extent to which Italian consumers have been forced to sacrifice some of their favorite brands; Figure 19: Private label is an increasingly influential draw in where consumers shop, particularly in Italy; Figure 20: More than half of Italian consumers are only occasional private label buyers, offering a fertile environment for building market penetration; Figure 21: The private label market is impacted by a broad range of drivers and inhibitors; Figure 22: The majority of Italians are basing food/beverage purchases more on value or cost, but there is little sign of a desire to compromise on quality; Figure 23: The attributes deemed most influential in what food and beverages Italians buy also highlight the price consciousness shaping the choices they make; Figure 24: Italian consumers are adopting various responses to cut back on food and beverage expenditures; Figure 25: There has been a marked increase in the actual self-reported propensity for Italian consumers to cook an evening meal at home from scratch in 2008-09; Figure 26: There has been little change in the propensity for Italians to have a takeaway meal at home in 2008-09; Figure 27: Italians show divided opinions about how famous branded food products, soft drinks and hot drinks compare to private label equivalents; Figure 28: Italian consumers are highly appearance conscious, making them less willing to trade-down when making personal care choices; Figure 29: Italian personal care choices showed little change on the basis of value or quality in the six months to August 2008; Figure 30: Personal care/beauty shoppers in Italy and elsewhere are highly price conscious; Figure 31: Nearly half of Italian consumers consider private label beauty products to be good alternatives to well known or market leading brands; Figure 32: Italian consumers are careful about how much they spend on alcohol, but do not perceive that they have been making significant cuts in their consumption; Figure 33: Value consciousness among Italian drinkers has had marginally more impact on at-home alcoholic drinks' consumption in 2008-09; Figure 34: Italians have shown a greater tendency to drink cheaper brands at home more than they have trade down on-trade; Figure 35: Nearly half of Italian consumers consider promotional offers to be highly influential in their alcoholic beverage choices; Figure 36: Only 20% of Italian drinkers believe that private label alcoholic drinks are good alternatives to market leading or famous brands; Figure 37: Italians largely see private label alcohol as inferior to its branded equivalent, especially wine; Figure 38: Price consciousness, but also brand image plays a significant role in influencing Italians' alcoholic drinks choices; Figure 39: Price led value is still the most influential factor for Italians' household and laundry care purchases; Figure 40: In 2008, Italian household and laundry care choices were made with greater consideration for cost/ value but consumers showed an ongoing desire for efficacy led quality; Figure 41: Italians highly value cleanliness, but dislike household tasks and seek to minimize the amount of time they spend on such tasks; Figure 42: 70% of Italian consumers are frequent buyers of cleaning or laundry products on the basis of value-for-money; Figure 43: Just over one-fifth of Italian consumers regularly purchases private label household care products to save money; Figure 44: The majority of Italian consumers believe private label household and laundry care products to be identical to branded equivalents; Figure 45: Manufacturers and retailers looking to deliver value-for-money must in the provision of factors associated with the PPI, but while also offering consumers lower than expected prices

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