Study: Old and new habits in the behavior of Romanian consumers in 2023

56% of Romanians say they will spend more during the holidays from December 2023 to January 2024, compared to last year, according to the EY Consumer Index 2023, which researches the consumption habits of Romanians. The study was carried out in December 2023 and highlights how the Romanian consumer’s perception and purchase and consumption experience has evolved in the context of the significant changes that took place this year on all economic, social and geopolitical levels globally.

The top 5 concerns for Romanians are related to the increase in the cost of living (32%), the country’s economy (31%), the result of political elections (30%), wars and external conflicts (25%), social unrest and division in society (19%) . These are proof of concerns regarding the internal situation, but also of the impact of the new conflict in the Middle East on public opinion, in addition to that of the war in Ukraine. These aspects surpassed those regarding mental health (20% of respondents) or personal finances (17%). On the opposite pole, Romanians seem less worried about their family and community relationships (23%), the possibilities to cover their basic personal needs (17%), the workplace (13), terrorist attacks (12 %) or pandemics (10%). Regarding the expectations for the future, the answers were among the most diverse.

Thus, in the chapter of expectations for an improvement of the current situation, personal finances (44%), workplace (37%), physical health and mental health (35%), the possibilities to cover personal needs are on the first places basic (31%). At the opposite pole, expectations that the situation will deteriorate in the future are mainly related to: the increase in the cost of living (72%), the country’s economy (60%), the result of the political elections in the country (59%), conflicts and wars (56%) and climate change (53%).

Consumer behavior seems to have undergone important changes, amid a general increase in prices for most basic products and services. The first three aspects where the respondents agreed to the greatest extent are: the effort not to waste food (80%), a better analysis of the necessity of purchasing non-essential products (79%) and the fact that they do not feel the need to be aware of the latest fashion trends (61%). Also, more than half of respondents (56%) indicated that they try to repair things rather than replace them, which shows the concern to save money in difficult times, and for 45% of survey participants brands are not very important in purchasing decisions. Almost half disagreed with the statement that they would tend to buy non-essential products (fashion items, cosmetics, home items) because it makes them happy (45%).

Thrifty shopping

Most of the study participants say they are considering cutting back on purchases of fashion accessories (jewelry, bags, sunglasses), at 64%, followed by consumer electronics (smart watches, phones, tablets, at 54% among the answers and even household items (household objects or products, decorations), with 51% of the answers. The main reason that causes Romanians to buy fewer products in the future is to save money (80% of respondents), followed by lack of need (77%) and the fact that life could be simpler without those products.

When asked which items they would be willing to pay more for in the future, most respondents indicated durable products (72%) and high quality products (71%), which also shows a high consumption attitude more responsible. On the other hand, they indicated a preference for purchasing products manufactured in Romania (49%), from trusted brands (42% of respondents) and from brands that promote health and well-being and support the community.

More care for personal finances

The EY study referred to a series of important aspects for the daily life of Romanians, starting with personal income, interest on loans, rents, personal debts, taxes, pension, cost of food, energy and fuels and up to job security , access to medical services and their cost. The five aspects that worry the respondents the most are: the increase in the price of food, energy and fuel (85%), the increase in income tax (76%), the state of personal income and pension insurance (66%), the possibility to buy a house (61%) and to have enough money to spend on things other than the usual ones (61%).

Respondents were also very concerned about the access and cost of medical services, including those regarding mental health or the increase in mortgage interest rates. They were less worried about personal debts, family separation or travel restrictions, aspects that lost their importance compared to the pandemic and post-pandemic period. Asked if in the next 3-4 months they would make changes in the approach to household expenses, the majority of those interviewed said they would spend the same, compared to the current period.