Although initially there were concerns as to whether the “cutter” of the promotions by 30% with a corresponding reduction in the initial prices of detergents, cleaners, personal hygiene items and baby diapers would throw the prices on the shelf, research carried out by “E.T. » shows that households are now buying up to 25% cheaper the products that have been included in the measure than in February.
And that’s because suppliers are going strong with offers – for now at least – despite being forced to cut back on initial prices, in an effort to “decipher” consumer behavior and see how they’ll move next.
Examples
According to the research of “ET” of Sunday, a well-known brand of shampoo (360 ml) that until the end of February had an original price of 6.96 euros and with a 45% discount on the shelf was sold at 3.83 euros, on March 1 its original price dropped to 5.77 euros. In the first week of implementation of the measure, the final price of the shampoo was 3.17 euros and now it costs only 2.88 euros, that is, almost 1 euro cheaper (-24.8%) compared to the previous month.
» Accordingly, a large company’s dishwashing detergent which at the end of February had a price list price of 5.9 euros and with a discount cost 3.84 euros, from March 1 its price dropped to 4.86 euros and under the promotion regime on the shelf it was placed at 3 .14 euros, while now consumers buy it at 2.96 euros, i.e. 22.9% cheaper than on February 29.
» Toothpaste that before the measures came into force had an initial price of 4.02 euros, with the “cutter” in the offers reduced on March 1 to 3.33 and on March 27 it had fallen further to 2.87 euros. As for the final price, i.e. following the offers, from 2.01 euros at the end of February it fell to 1.67 euros with the start of the measures and is now sold a little more expensive at 1.72 euros, but the price remains lower by 14.4% compared to the previous month.
» The baby diapers of a large multinational are sold on the shelves almost 1.5 euros cheaper following the implementation of the new measures. In particular, the initial price from 29.8 euros, at the end of February, was reduced to 27.08 euros. Under the promotion regime, households bought last month for 14.9 euros (-50%), on March 1st for 13.54 euros and now they cost 13.58 euros.
» Liquid laundry detergent (70 scoops) which in February had a list price of 25.95 euros and with the discount was sold at 15 euros, following the mandatory reduction of offers the initial price dropped to 19.46 euros on March 1 and the final price to 13 .95 euros, where it remains until today (13.9 euros), with the savings for consumers amounting to 7.3%.
» Households buy bubble bath of a well-known company cheaper, even by 4%, as its final price following the offers from 2.99 euros in February, decreased to 2.46 euros on March 1 and rose slightly to 2.87 euros in end of March, as the supplier reduced the percentage of the discount. However, the amount of offers changes at regular intervals, depending on the commercial policy of each company. In any case, bubble bath is sold cheaper following the measures are implemented.
» As far as baby milk is concerned, with the imposition of the ceiling on the gross profit margin, the reduction in prices on the shelf ranges, according to the Ministry of Development, from 15% to 20%. Despite the industries’ initial reactions to the measure and their disbelief in its effectiveness, the prices of baby milk not only fell significantly with the implementation of the cap, but also registered a further drop compared to the beginning of March.
For example, first infant milk (0-6 months) while until February 29th it was sold at 26.34 euros (pack of 800 grams), on March 1st the selling price was at 22.4 euros and on March 27th at 21.9 euros, i.e. 16.9% cheaper compared to the previous month. The same is true for the first price of second baby milk (6-12 months) of a well-known company, as it fell from 20.57 euros in February to 17.5 euros on March 1st and to 17.3 euros at the end of the month.
It is worth noting that promotions are prohibited in this particular product category and therefore prices are not expected to drop much further.
WITH CONSUMERS IN VIEW: “War” of offers on the shelf, “battle” of supplier-chains
Although most companies are continuing aggressive marketing with bold off-the-shelf offers at the already reduced initial prices, market representatives feel that this tactic cannot be continued for long as it will lead to them recording losses.
“It will take some time to see how consumers will evaluate the new measures, how they will make their purchases and companies will adjust their commercial policy accordingly. In this phase the industries continue the promotions because they are afraid of losing their customers. Besides, consumers, especially in detergents and personal hygiene items, are used to and want to buy branded products that are on sale”, he notes to “ET”. of Kyriaki leading executive of the organized food retail trade.
To the… knives
It is worth pointing out that the suppliers are at … knives with the supermarkets and have not yet signed their trade policy agreements, as they are asking the retailer to put … back and shoulder part of the cost of the promotions, with the excuse that their profit margin has been squeezed a lot.
“Before mid-summer, suppliers and supermarkets are not expected to have reached the annual agreements. “Retailers cannot support this effort, as they have increased operating costs and companies will decide their next steps based on consumer behavior, but also competition,” the same source points out.
However, it is almost certain that industries will continue to bid, even on a smaller scale, in order to maintain their market shares.
| PRODUCT | INITIAL PRICE 2/29/2024 | FINAL PRICE 29/2/2024 | INITIAL PRICE 1/3/2024 | FINAL PRICE 1/3/2024 | INITIAL PRICE 27/3/2024 | FINAL PRICE 27/3/2024 | FINAL PRICE CHANGE 29/2-27/3 |
| Dish detergent 900 ml | 5,9 | 3,84 | 4,86 | 3,14 | 4,86 | 2,96 | -22,9% |
| Floor cleaner 1 lt | 3,73 | 1,87 | 3,08 | 1,55 | 3,08 | 1,85 | -1,1% |
| Bubble bath 650 ml | 5,98 | 2,99 | 4,91 | 2,46 | 4,78 | 2,87 | -4% |
| Shampoo
360 ml |
6,96 | 3,83 | 5,77 | 3,17 | 5,77 | 2,88 | -24,8% |
| Toothpaste 75 ml | 4,02 | 2,01 | 3,33 | 1,67 | 2,87 | 1,72 | -14,4% |
| Liquid laundry detergent
(70 measures) |
25,95 |
15 |
19,46 |
13,95 |
19,46 |
13,9 |
-7,3% |
| Baby diapers No3
(60 pieces) |
29,8 |
14,9 |
27,08 |
13,54 |
27,08 |
13,58 |
-8,9% |
| Infant milk (0-6 months) 800 gr. |
26,34 |
– |
22,4 |
– |
21,9 |
– |
-16,9% |
| Milk of the 2nd infant age (6-12 months) 800 gr. |
20,57 |
– |
17,5 |
– |
17,3 |
– |
-15,9% |
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