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Global Economy

Eat cheaper – travel more

Consumers in Germany are changing their shopping behavior as a result of the high inflation rate that has been going on for months. "The effects of inflation are particularly evident in everyday products such as groceries or personal care products," explained GfK market researchers. In this area, the volumes fell sharply between January and May. The market research company announced this on the basis of its investigations.

8.2 percent less meat and sausage products, 8.5 percent less fresh fruit or vegetables and seven percent less baked goods were bought. "With these fast-moving products, consumers quickly adapt their strategies by buying less, resorting to offer prices or switching from manufacturer brands to cheaper private labels," says GfK. The share of own brands in total sales grew by 34.6 percent in the first quarter. For 36 percent of people, the price is currently the most important criterion when making a purchase decision.

More clothing

But there are also areas of consumption where demand is increasing, for example in the clothing sector. According to the market researchers, a pent-up demand has accumulated here during the pandemic. Apparently, clothing buyers are currently deliberately trying to avoid inflation. The average price paid was slightly below that of May 2019.

According to the market researchers, there are two strategies behind this: consumers buy cheaper products in specialist shops or switch to other sales channels with lower prices. The textile discounters were happy about a two-digit increase in sales.

Uneven development in technology

The demand for so-called technical consumer goods is developing in the opposite direction. From January to May, sales in the overall market increased by three percent compared to the previous year. In recent weeks, however, there has been a turnaround. Sales declined in most product areas, especially in low-cost entry-level devices. Higher-quality and higher-priced premium devices, on the other hand, are less affected by the current crisis situation. "Consumers continue to pay attention to quality when shopping and are willing to pay more for it," GfK said.

Travel is booming

The travel industry is developing in completely opposite ways to everyday products. After more than two years of the corona pandemic, there is a lot of catching up to do among consumers, according to the market researchers. The booking figures for private vacation trips in the current summer season are comparable to the last pre-pandemic year 2019, in some cases they even exceeded it.

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