In my latest post I wrote about advertising expenditures in the Russian market and the affect of the economic crisis on the advertising industry. The turnover of the advertising market in Russia decreased by 14% so far this year in comparison to the same period of 2014 after showing constant growth for several years in a row. Advertisers started shifting budgets into more efficient and measurable channels, such as search advertising – SEM came out as the only medium that saw higher volumes this year.
But how did the crisis really affect your customers? Nielsen’s Consumer Confidence Index sheds some light on changes in Russians’ purchase behavior in 2015.
According to Nielsen’s survey, a lot more people (79% of all respondents) feel that the country is in recession after Q3 of 2015, while only 65% said so in Q2. 45% of the respondents also do not believe that the crisis will end any time soon.
68% of the respondents confirmed that they switched to savings since the start of the recession. Out or these, 58% said they spent less on clothes, 57% – on out-of-home entertainment, 52% – on short breaks and holidays, and 40% – on take-away food. 44% said that they delayed purchases of electronics – the largest category in Russian e-commerce – including computers and mobile phones. 40% of the respondents also admitted that they switched to cheaper brands of products overall.
When Russian consumers do spend some of their spare money, 38% buy clothes, 33% book annual vacation, 32% spend on out-of-home entertainment. 26% said they invest into home improvements and 16% – into new technology.