Due to wages not keeping pace with inflation, Argentinians continue to tighten their belts, increasingly opting for affordable options. According to data from consulting companies Scentia and ShopApp, 90% of consumers choose local supermarket brands over leading ones. These brands saw a 15.3% increase in sales compared to last year, with online channels growing by 8.9% and wholesalers by 8%.
A survey found that 60% of consumers regularly purchase these brands, but also consider other options. 26% are extremely satisfied, while 62% are satisfied with their quality. However, 31% believe the quality has improved.
ShopApp's founder and CEO, Juana Melo, noted that consumers are becoming more frugal and prioritize promotions, frequenting different outlets to find better prices. As a result, local brand consumption is growing, with more consumers willing to try them due to their affordable prices and quality.
Consumers prefer these local brands for their lower prices, promotions, quality, trust, product variety, and ease of availability. However, 10% avoid them due to unfamiliarity, lack of availability in their usual stores, distrust of quality, or limited product range.
The most popular local brand products are cleaning supplies, packaged food, and dairy products, particularly biscuits, milk, and pasta. According to NielsenIQ data, local brands' edible oil reached 24% of total volume in April-May, while laundry detergent accounted for 6%.
In the first half of 2023, 94% of product categories experienced contraction. High-priced products declined more sharply than average, while others declined less. The trend of buying more affordable brands is one of Argentina's strongest cost-saving strategies, outpacing other Latin American countries.
Top local brands include major retailers' in-house products from Carrefour, Dia, and Coto's Ciudad del Lago, as well as Chile's Cencosud group's Cuisine & Co. Other popular brands include Changomas' Check and Aliada, which replaced Walmart's brand after it was transferred to GDN group's Francisco de Navazas. Additionally, La Anónima and wholesaler products from Diarco and Makro are also popular.