In times of economic crisis, consumers buy products or experiences to disrupt the present and pretend they are in another context than the one causing hardships. According to the white paper, status triggers a set of emotions, such as pride and satisfaction, and consumers frequently buy objects to reflect these emotions and communicate them to their peers.

“In 2009, when Chile’s real Gross Domestic Product (GDP) contracted, sales of gin registered over ten percent growth in volume sales. Chileans associate this spirit with the UK, a country that they have a longstanding obsession with, and assume that drinking it will result in a temporary distance from their economic woes,” states author Fernando Cruz, Senior Research Analyst at Euromonitor International.

According to the white paper, when consumers face economic uncertainty they want to keep small pleasures despite their economic situation demanding prudence in spending. In 2009, during the subprime crisis, full service restaurant sales grew 9.2 percent in Peru, a much faster rate than in previous years while the country´s GDP grew by only 1.0 percent. “Indulgent purchases, which involve spending money on non-essential goods to be enjoyed as special pleasures, function as relief from difficulties consumers may experience,” continues Cruz. “Peru´s developed culinary culture, which transcends social classes, explains this phenomenon. During crises, people look for little moments of refuge and use food to divert their attention from contingent problems.”

From 2010 on, once the worst period of the subprime crisis had passed, performance re-aligned with the evolution of Peruvian economy.
Further trends highlighted in the white paper include convenience, transparency and nostalgia.

To download the white paper, visit: http://go.euromonitor.com/white-paper-emerging-markets-during-crisis-business-strategy-uncertainty.html 

About Euromonitor International

Euromonitor International is the world’s leading provider for global business intelligence and strategic market analysis. We have more than 40 years of experience publishing international market reports, business reference books and online databases on consumer markets.