According to the research of EY Greece
Greeks are worried about the increased cost of living consumers, as derived from the conclusions of a consumer survey by EY Greece. The EY Future Consumer Index Greece 2024 survey was carried out by MRB on behalf of EY, on a sample of 500 Greek consumers, from 17 to 23 September 2024, and is part of EY’s wider series of global surveys, Future Consumer Index, which monitors the consumer trends in the world’s most important markets.
The EY Future Consumer Index tracks five key consumer typologies, based on their dominant concerns and priorities. Consistently in first place, in Greece, but also worldwide, are those whose main criterion is affordability of products (Affordability First – 33%), with a marginally increased share compared to last year (31%). Significantly strengthened (22%, from 18% in 2023) and in second place this year, is the group of consumers who are concerned about their health (Health First). One in four reportedly prioritizes the environment and the planet in their purchasing decisions (Planet First – 21%), while 12% are concerned about the social impact of their choices (Society First). Finally, the percentage of consumers who are mainly looking for experiences (Experience First – 12%, from 20% last year) is very reduced.
As last year, the three issues that concern Greek consumers the most (option “concerns me a lot”) are the increased cost of living (69%), their personal finances (63%) and the country’s economy (47%) . In an environment of increased pressure on health systems worldwide, consumers are also concerned about their mental (41%) and physical health (39%).
The experiences of recent years, combined with environmental awareness, lead to more restrained consumer behaviors: significant percentages of consumers try not to throw away food (94%), do not feel the need to follow the latest fashion trends (68%) or prefer to repair something rather than replace it (65%). Also, three in five consumers (60%) reported spending less money on products and non-necessities, and one in two (50%) said they only buy essentials.
Private label penetration is increasing, although it remains significantly lower compared to the rest of the world. Overall, one in two have switched brands they buy or are buying more private label products. Their purchase intention, however, is mainly focused on home and household care items (66%).
At the same time, consumers’ relationship with private label products is changing, as they are no longer viewed simply as a cheaper alternative, but as ‘equal’ products. Significant portions of consumers consider that private label products satisfy their needs just as well as branded products (60%) and that they are of increasingly better quality (54%).
Online consumption seems to have been integrated into the lives of Greek consumers, primarily for entertainment (frequent use – 76%) and financial and banking services (66%), and secondarily for customer service (43%) and online product purchases (36 %). However, although with a reduced intensity, there are still factors that concern or annoy consumers when shopping online, with the high cost of delivery/pickup (40%) at the top, it was pointed out in the RES EMP.
Despite the rise of e-commerce, a significant percentage of consumers still choose physical stores. Characteristically, only 12% made online orders from supermarkets, with delivery at home or in the store. At the same time, even when buying online, consumers still seek human interaction, more so after the sale, for questions or complaints (66%) or for product and money returns (69%).
The influence of influencers remains limited, and at much lower levels than the rest of the world, in Greece, as 83% of respondents, compared to 34% worldwide, stated that they are rarely or never influenced by them. Their effect, however, is more than double on the younger generations, leading to the conclusion that the role of influencers will increase in Greece in the coming years.
Artificial intelligence (AI) is playing an increasingly important role in shaping purchasing decisions. The consumer public in Greece, however, seems to be still not familiar with its applications: Less than two out of ten (18%), mainly young people aged 18-29, know well what it is, and how it is used. One in two (53%) reported having some knowledge, while 26% of respondents, mostly consumers aged 40-64, have heard the term AI but do not have a good understanding of it. However, the trust of Greek consumers in the application of AI is also reduced, with the percentage stating that they trust it completely not exceeding 10% for most cases of application.
One in three consumers (34%) consider sustainable development extremely (8%) or very important (26%). The main reason that prevents consumers from buying sustainable products is the high price (77%), followed by factors related to the lack of information, but also trust, regarding the sustainable claims of the brands and the reliability of the businesses that promote them.
The tendency to concentrate a series of activities around the home is strengthening, but with different characteristics from the period of the pandemic, when consumers resorted to online shopping, delivery for their food and online platforms for entertainment. Today, the home now takes on a more experiential and multi-collective role, with consumers, even of the youngest age, estimating that they will spend more time (41%), and cook (50%) and entertain (40% ) more at home.
Consumers estimate, in high percentages, that they will reduce their spending over the next four months. However, about one in three participants said they have not changed how they buy products as a result of their price increase (35% on average, across 14 product categories).
The most important purchasing criterion in three years from today remains the price (76%). The quality of the product or service (52%) and whether the product is healthy or good for the consumer (47%) also stand out as key criteria.
Commenting on the research findings, Thanos Mavros, partner at EY Greece and head of EY’s Consumer Products and Retail Sector in Southeast Europe, said: “As in the rest of the world, consumers in Greece are concerned about the high cost of living and the impact on their finances. EY’s research, however, also highlights a number of other issues towards which consumers are positioned in a different and often conflicting way: loyalty to brands and reward programs, e-commerce in relation to physical stores, the role of the home as a consumption hub, the value of personal data and the role of AI or human interaction in the shopping experience. Faced with a fragmented and fluid market, businesses are challenged to perceive consumers as unique individuals, to listen to their diverse, unique needs, priorities, preferences, and demands, and to formulate personalized strategies to reach them and build durable trust relationships with them.”
