A GLOOMY mood prevails among Greek consumers as the austerity measures cast a shadow of pessimism and uncertainty, according to a recently released global survey. 

 

Some of the findings of the Boston Consulting Group (BCG) survey are indicative of the anxiety that Greeks feel about their future and of their plans to severely tighten their household budget, as the unemployment rate has reached 15.8 percent and more painful wage cuts have been implemented. 

 

The survey was conducted in March 2011 and based on interviews of almost 25,000 consumers in 21 countries around the world.

 

The results of the survey reflect the current situation in Greece and confirm that Greeks top the list of those directly affected by the global recession: 74 percent of Greek consumers stated that they have been personally affected by the financial crisis. 

 

Moreover, 53 percent plan to spend “a little less” or “a lot less” in the next 12 months, while only 3 percent plan to spend “a lot more” or “a little more” than they did last year. The three main reasons explaining their decision to reduce spending are, in order of importance:  

To cope with a reduced household budget, seven out of 10 Greek consumers said they intend to shop in discount stores more often and buy more products that have been discounted. In order to deal with the associated anxiety and stress, Greeks prefer to spend time with family and friends; only three out of 10 replied that they would go out, seeking distraction outside of the home. 

 

As noted by Vassilis Antoniades, the head of BCG in Athens, the survey confirms that in Greece there is more anxiety about the future and job insecurity and a greater intention to reduce discretionary spending over the next 12 months. “It is, therefore, only natural that significant changes will occur in our spending behaviour and that we will become conscientious rather than conspicuous,” he says. 

 

This is verified by the survey, which reveals that 79 percent of Greek consumers will defer major expenses that can wait and 73 percent said they will cut spending on non-essential items. “It comes as no surprise that both of the percentages are much higher than the average of other European nations,” Antoniades adds.

 

The report does not limit itself to the impact of the economic crisis on spending patterns but examines how the recession has shaped consumer values, habits and behaviour. Rising values, which are currently at the top of the rankings, include savings, wellness, value for money, conviviality and calm, while at the bottom are wealth and luxury. 

 

“Consumers are adapting their habits, making significant cuts in their spending and refocusing on at-home consumption and essential needs, thus ‘value for money’ is critical for average-income households,” Camille Egloff-Ghicas, managing director of BCG in Athens, says. Non-food categories and out-of-home entertainment are the hardest hit, she adds: “The reasons behind trading down further illustrate the financial stress experienced by Greek consumers. Over 60 percent trade down primarily out of necessity, for reasons such as saving money, balancing their budgets and because they cannot afford more.” 

 

The survey results also revealed that the economic crisis has affected the outlook of Greek consumers more than in any other country. For example, in Greece 77 percent of those surveyed feel anxious about the future, while in the five major EU countries the respective percentage is at 53 percent and in the US 52 percent. Furthermore, 24 percent of Greeks declare that they feel “very insecure” or “insecure” in their present job, whereas in other southern European countries the percentages are much lower: 19 percent in Spain, 18 percent in Italy, 17 percent in France and only 10 percent in neighbouring Turkey. 

 

However, although the Greeks are the most affected by the crisis it is notable that more than any other Europeans, they indicate that once the crisis ends, they will resume spending and buying like before.