Poles keep price foremost in choosing an everyday shopping destination


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Poles keep price foremost in choosing an everyday shopping destination

  1. 1. FREE ARTICLE www.research-pmr.com Poles keep price foremost in choosing an everyday shopping destination Author: Marcin Rzepka August 2012
  2. 2. Poles keep price foremost in choosing an everyday shopping destination Polish consumers, regardless of their levels of disposable income, let price be their guide when deciding where to shop, according to a survey conducted by PMR Research. Nearly half of the survey’s respondents indicated that they regularly shop at Biedronka. Discounters remain the most popular shopping locations, followed by hypermarkets. Small shops preferred for buying bread Polish consumers are prone to shop in modern distribution channels – hypermarkets, supermarkets and discount shops – when buying household chemicals and packaged products such as flour, pasta, rice, grains, cereals, spices and beverages, according to a survey conducted by PMR Research. Yet when buying bread, Poles are more of a mind to visit small grocery shops, fairs and open air markets. Up to 75% of the respondents indicated they visit smaller shops (which they patronize most often) to make daily purchases of bread. However, Poles are far less likely to purchase household chemicals, packaged goods, beverages and sweets in these small outlets. This is most probably because these products can be bought in bulk, can be stored for longer, and usually have extended expiration dates. Where Poles shop for select products, October 2011 Packaged products 80% (flour, pasta, rice, grains, cereals, spices, etc.) 27% Household chemicals 79% 19% 77% Beverages 33% 76% Dairy 64% 71% Fruits and vegetables 67% Sweets 66% 33% 63% Bread 82% 61% Meat 60% Source: PMR Research, 2011 www.research-pmr.com www.research-pmr.com
  3. 3. Poles keep price foremost in choosing an everyday shopping destinationDiscounters prevail among the most popularchains Almost half of the surveyed indicated that they regularly shop at Biedronka, a discountchain. These consumers also gave high rankings to the discounters Lidl (third) and Kaufland(fifth). During the crisis year of 2009, according to GfK data, Poland was the only country inCentral and Eastern Europe in which discount chains were more popular than supermarketsor hypermarkets. Further, Poland remains the only country in which this popularity persists.By comparison, following the economic crisis customers in other countries of the regionreturned to their supermarkets and hypermarkets (for more information on this trend, seethe article entitled “Popularity of modern retail formats on the rise in Central and EasternEurope”). PMR Research’s survey seems to corroborate the popularity of discount shops: 83%of the respondents regularly shop in one of the discount chains; 63% prefer hypermarkets(respondents could choose more than one answer). Further down the list of everyday shoppingdestinations, Tesco and Carrefour joined the club of the top five most popular chains in Poland.To note, these are also chains that – just like discounters – offer a broad assortment of privatelabel goods with lower prices. This confirms just how important price is to Polish consumers.Yet it is also worth remembering that these retailers maintain an extensive networks of outletsthat have a variety of formats: hypermarkets, supermarkets, neighbourhood shops and petrolstation shops, a fact that also contributes to their popularity. For some time, discount chains have been trying to redirect consumer focus. Ratherthan concentrating on lower prices, the chains have put the focus on the high quality of theproducts they offer. The chains are striving to launch niche, branded products targeted atconsumers who are seeking more than just the best price. Biedronka is currently trying toposition itself more as a convenience shop rather than a standard discount chain, highlightthe convenient locations of its shops, and to emphasize its low prices. Given these findings ofPMR Research, Biedronka seems to be right on the money: respondents disclosed that priceand proximity are the key factors affecting their decision on where to shop.Shops in which consumers regularly shop Biedronka 46% Tesco 26% Lidl 22% Carrefour 21% Kaufland 15% Real 14% Auchan 7% POLOmarket 6% Intermarche 5% Delikatesy Centrum 4% Lewiatan 4% Spolem 4%Note: Respondents could choose more than one answer, therefore the values do not sum up to 100%.Source: PMR Research, 2011 www.research-pmr.comwww.research-pmr.com
  4. 4. Poles keep price foremost in choosing an everyday shopping destination By comparison, only 1% of the surveyed said that they regularly shop in delicatessens such as Alma and Piotr i Paweł. In this case, price seems to be the deciding factor, though delicatessen chains have also decided to lower their prices amidst a crisis that has impelled consumers to focus on savings. Another factor that diminishes consumer popularity with delicatessens is their substantially less developed chains. Consumers look for premium quality at low prices According to Poles, quality and price are the most important factors they take into considerations when deciding what product to purchase. Much less important are factors such as the product’s manufacturer or the consumer’s knowledge of the brand. Factors material to the decision to purchase a given product, October 2011 Quality 4.49 Price 4.18 Availability 4.09 Habit 4.03 Polish manufacturer 3.84 Manufacturer 3.37 Known brand 3.3 Average of awarded scores on a scale of 1-5, where 1 means “not important” and 5 “very important”. Source: PMR Research, 2011 www.research-pmr.com Countrywide consumer survey conducted by PMR Research in October 2011 on a representative sample of 1,000 adult Poles. Estimated error level of approximately 3%. www.research-pmr.com
  5. 5. About PMR PMR Research (www.research-pmr.com) is the specialised custom research unit of PMR. It offers a full array of qualitative and quantitative research methodologies, providing services such as customer satisfaction studies, brand awareness and brand image research, distribution and competition studies, segmentation analyses, fieldwork, online surveys and customised analyses of selected branches of the economy. PMR Research’s services are available in over 20 countries of Central and Eastern Europe. PMR Consulting (www.pmrconsulting.com)provides a wide range of services in over 20 countries of Central, Eastern and Southern Europe, including market entry feasibility studies,sourcing, CI (competitive intelligence), strategic advisory, FDI assistance (MA and greenfield projects), quick consulting as well as any other services and support a company might require to enter a market, find a business partner or gain reliable information. Our services are always tailored to the specific requirements of our clients, many of which are Fortune 500 companies PMR Publications (www.pmrpublications.com)provides reliable market intelligence for business professionals interested in Central and Eastern European countries as well asother emerging markets. Publications by PMR analyse the business climate in the region, in particular in the construction, retail, IT, telecommunications and pharmaceutical sectors. PMR Publications offers both free and paid subscription newsletters, internet news portals and in-depth reports. To find out more about Poland and Central and Eastern European countries please visit www.polishmarket.com and www.ceemarket.com as well as regional and national sector portals dedicated to construction (www.constructionpoland.com, www.constructionrussia.com, www.constructionukraine.com), IT and telecom (www.itandtelecompoland.com, www.ceeitandtelecom.com, www.ictrussia.com), retail (www.retailpoland.com, www.ceeretail.com, www.russiaretail.com) and pharma (www.pharmapoland.com, www.ceepharma.com). Contact PMR PMR Research Marketing tel.: /48/ 12 618 90 80 tel.: /48/ 12 618 90 20 e-mail: info@pmr-r.com, e-mail: marketing@pmrcorporate.com www.research-pmr.com www.pmrcorporate.com