The cost of living crisis affects all areas of life: 69% of consumers postpone spending on non-essential purchases, in favor of efficiency and financial savings - according to the global consumer survey conducted by the consulting company PwC, a finding that also emerges from conversations of "Israel Hayom" with families kneeling under the burden of expenses.
According to the annual survey, which was conducted about two weeks ago among 9,180 consumers worldwide, the cost of living and the disruptions in supply chains that affect the availability of products and delivery times, are causing changes in consumption habits in stores and on the Internet all over the world.
"Trying to reduce."
Danny and Neta Ezra, photo: None
About 49% of the survey participants stated that they purchase products as part of promotions, 46% look for retailers that offer better value, 40% use comparison sites to find cheaper alternatives, 34% buy in quantities to save costs, and 32% purchase brands that the retailers themselves produce .
The problems in the supply chains led to the fact that 24% of the respondents reported longer than expected delivery times, which bring the buyers to the stores, and 26% testified that the lack of product availability affects their consumer behavior - which causes congestion and long queues in the stores.
Naama Druckman, a partner at PwC Israel and a specialist in digitization procedures for organizations, told Israel Hayom: "Today's consumers are sophisticated. An organization needs to sell the consumer a value and not just an experience, providing him with a hybrid experience both online and offline. Those who succeed in creating such a customer experience are successful Sell despite the situation, and not necessarily because of it."
Another aspect of the consequences of the cost of living on consumer behavior is the heavy mortgage payments.
Many couples and families purchased apartments in the belief that they would be able to meet these payments, but did not foresee the huge impact on their expenses as a result of the interest rate increases, which recently increased by 0.5% - this is the eighth time in a row.
Consumers are sophisticated.
Druckman, photo: PR
Dani Ezra, owner of "Medd Printing Services Tel Aviv", is married to Netta, a chocolatier by profession, and they have three children.
"About seven years ago, we bought an apartment in Modi'in, and took out a mortgage of NIS 420,000," he says.
"Since the interest rate increases, the monthly repayment has increased by about NIS 800, and with the current increase - our mortgage will become more expensive by more than NIS 1,000, which is a high amount that interferes with the cash flow."
Ezra also talks about the concessions: "We got permission to enlarge a room in the house, because we have two daughters in one room, but we stopped the processes because the mortgage became so expensive. The increase in interest rates affects our everyday life, and we are trying to cut back in other aspects as well - we don't fly abroad At all, and even for vacations in Israel, we hardly ever go out.
"No one expected the rise in interest rates" The mortgage is getting more expensive (archive), photo: Roni Shitzer
"The increase in interest rates is crazy and disproportionate. It affects the young couples who buy an apartment, and my heart is with them, and also the middle generation, like us, who bought apartments and need to downsize. There are those who will not stand it and will have to sell the apartments, which is very sad in my eyes."
Another couple, from the center of Haaretz, parents of four children, tells about the great financial difficulty.
"About 13 years ago, we took out a 25-year mortgage, and no one expected the crazy increase in interest rates since then," says Dalia (pseudonym).
"Until a year and a half ago, we paid NIS 8,400 a month, which is also insane, but it is high because I have a business, and as long as it worked, I reduced the number of years of the mortgage. Today, the repayment has reached NIS 10,000, and it is suffocating from every direction.
"Unfortunately, and with all the love for the country, in our close circles there is talk about leaving or relocating. My children will not be able to live here. We have four children, and this is reflected in so many things. I have a daughter who is learning to drive, three children who need Private lessons, every Monday and Thursday there is a bar mitzvah for a child from the class, and you can't say yes and no to that, and there are many.
"You go into the supermarket and the cart is not the same cart, the shopping is no longer the same shopping. I have a kindergarten where dozens of young couples have children, and everyone speaks from their hearts. Even though everything has become more expensive - the electricity, the food, and the food - I did not raise the school fees this year. I do not I can look into the eyes of the parent, whose salary has not increased. However, next year I will have no choice, otherwise I will have to lock the doors. There were parents who told me that I should raise the price because they want to have somewhere to return to next year."
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