Swiss retail trade again spends more on advertising
According to a study by the consulting firm Nielsen, the Swiss retail sector grew slightly last year. Advertising spending, however, rose sharply once again.
In concrete terms, according to the Nielsen survey published on Tuesday, the retail trade in Switzerland generated sales of just under 33.8 billion Swiss francs last year, which corresponds to a slight increase of 1.5 percent.
The reason given by the study is that consumers shop more often and tend to make more impulse purchases: In total, the average Swiss household spent money on a purchase 165 times last year. According to Nielsen, an average of around CHF 38 worth of everyday products ended up in the shopping cart each time.
Although around 69 percent of consumers still plan their purchases in advance, impulse buying in stores is becoming increasingly popular. Such impulse purchases increased by 4 percent compared to the previous year, it said. In addition, 28 percent more bought private label in 2018 compared to the previous year, and for half of consumers, quality is important and a legitimate reason to pay more for quality products, it said.
In addition, the competition for customers' attention continues unabated, according to the "Nielsen Consumers 2019 Switzerland" report. At CHF 7.1 billion, gross advertising expenditure in 2018 was a whopping 16 percent higher than in the previous year. "In terms of the percentage share of advertising expenditure, out-of-home now takes first place with 36 percent, followed by TV and print media with 25 percent each. An exciting development in view of the intensified competition in the battle for the consumer's attention," says Klaas Louis Springer, Market Leader of Nielsen in Switzerland. (SDA/pd/swi)
