Mass consumption in Argentina has dropped by 2 percent in the last quarter, compared to the same period a year earlier, according to a private report by Kantar Worldpanel consultancy.
With the Upper-lower class plummeting by 6 percent. “The period between July and September is the first complete quarter after the devaluation, which resulted in a stimulation of inflation. That’s where we have seen the most standout reaction from the argentine households,” indicates the Kantar Commercial Director, Federico Filipponi.
The consulting agency divided Argentine households in four strati: upper-middle, lower-middle, upper-lower and lower. The upper-lower category is the one affected by the devaluation the most.
Filipponi went on to indicate that “there is no single reality, as every socio-economic level reacts differently. For example, the upper-low class, set the tone, this last quarter,[consumption] is set to fall by 6 percent,” he added.
Households have been recorded to stretch the lifespan of mass consumption products in 87 percent of the analyzed categories, mainly in those which aren’t necessity goods or products that the household can go without for a fair period of time, This behavior has been established in every area of the four sections, regardless of their current financial situation.
“In a difficult and complex situation, it’s possible to look for growth opportunities by fragmenting the market and understand where the growth is moving or looking for the niche of value tied to mid-term trends”, Filipponi indicated.
The consultancy expects for consumption to drop by 1.8 percent overall this year when compared to 2017, and by 2.1 percent in 2019.