89 percent of Romanians choose spending over saving - Observatoire Cetelem 2011

89 percent of Romanians plan to spend more this year while only 14 percent intend to put some money aside, according to the Observatoire Cetelem 2011 survey on consumer behavior in Europe. The study reveals that Romanians have the biggest appetite for spending among 12 other surveyed nationalities. “It is surprising as this does not translate into facts yet, but these are the intentions,” explained Gilles Zeitoun, general director of Cetelem IFN.

Other Europeans countries where consumers plant to spend more this year are Hungary (84 percent), Poland (72 percent), the Czech Republic (83 percent) and Slovakia (85 percent) while the Spanish, French, Italians, Portuguese, Belgians and Germans say they will chose saving over spending in 2011. According to the study, the British are the most interested in saving money this year (58 percent).

A purchase is considered significant for the family budget when it goes over a threshold, which is different from one country to another. If for a German who buys home appliances the purchase is considered significant when it is more expensive than EUR 768 for a Romanian the threshold is EUR 184. When planning their holiday an Italian or a German consider that they spend an important amount of money when the price of the holiday package goes over EUR 1018, EUR 906 respectively. For a Romanian, a Hungarian or a Czech consumer the threshold is EUR 168.

Most Europeans plan to spend money this year on leisure activities and traveling, followed by home renovation and upgrades. For 50 percent of respondents, traveling and leisure activities are a priority in 2011, while more than 40 percent plan to invest in household appliances, home renovation and mobile phones. Furniture items, electronics or gardening tools are also the respondents’ wish list, according to the survey.

Following the crisis the decision to purchase was no longer spontaneous, consumers dedicating a larger amount of time to analyzing existing options from a price-quality perspective. Over 90 percent of Europeans take approximately one month for market research before making a purchase and over 50 percent of them rely on their intuition or advice given by their family or peers instead of the vendor.

In Romania, over 65 percent of consumers compare prices before deciding to buy. British consumers are the least interested in comparing prices (47 percent).

Cetelem IFN is part of BNP Paribas. Last year the company saw a 29 percent increase in credits while the consumer credit market went up by ten percent. Its credit portfolio amounted to RON 805 million. In 2011 the lender targets a further 25 percent increase and announced plans to focus on credit cards and internet as a distribution channel.

Observatoire Cetelem 2011 was compiled in December 2010 on a sample of 8,700 people aged over 18. The research targeted 13 countries where Cetelem is active. It has a 2 percent margin of error.

Simona Bazavan