Why a sizeable number of Italians will buy branded products only when they are on promotion

52% of Italians say they buy branded products only when they are on sale, on promotion or discounted, while private labels are gaining ground precisely because, for 55% of the population, they are better value. Furthermore consumers plan to buy more private label in the future, especially in the home care (50%) and packaged food (33%) segments.

This trend is revealed by data from the EY Future Consumer Index, which surveyed the opinions of 23,000 citizens around the world on several topics. The reader should bear in mind that the sample in Italy totals 500 individuals and that therefore the results should be read in terms of the trend illustrated rather than the precise percentage.

It is also confirmed by what we see on weekly basis in the negotiations with retailers where there is an increase in the demand for promotions (in store and on line) and for extensive price cuts.

One of the trends that emerges from the survey and that is linked to the area of spending is the contribution of influencers, creators, bloggers or vloggers (now increasingly regulated by law) in purchasing decisions. These figures have a significant role in the decision-making process, so much so that 51% of respondents rely on products recommended or promoted by influencers, while 43% admitted to having made a purchase exclusively on the basis of such a recommendation or promotion. This is taken in considerations and included in the marketing budgets allocated on all brands we deal with at Green Seed Italy.

Tools and technologies are also changing the spending scenario. Consumers’ preference – especially Millennials and Gen Z – for using shopping apps is transforming the retail landscape, also generating new opportunities for brands. Amongst the main reasons for using apps includes the desire to access exclusive discounts and offers (50%), greater convenience (45%), and attraction to promotions or offers reserved for app users (34%). This data highlights a significant change in consumer purchasing behaviour, as they feel increasingly comfortable sharing personal data in exchange for personalized experiences and recommendations on possible alternatives. However, despite the enthusiasm for new technologies, people remain cautious about the security of their personal information: 62% of respondents are concerned about how their data is managed while 63% fear a breach of their data and hacker attacks and 70% fear identity theft or fraud.

Economic accessibility is the dominant priority, in line with the behaviour highlighted above. However, the survey also shows that sustainability remains a key area of interest for consumers, especially Italians. This leads 95% to make an effort not to waste food and 58% to regularly recycle or reuse products after use. 35% of consumers are increasingly oriented towards purchasing second-hand items (a growing market), and 74% will try to repair, and not replace, if possible to do so. As for attention to health and well-being, which is also on the podium of priorities, 73% expect to be more aware and attentive to this issue in the long term, for example by preferring the purchase of healthy products (42%), but also by reducing the purchase of alcoholic beverages (51%) or tobacco in the coming months (46%).

Sauro Musiani, MD Green Seed Italy

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