Rising inflation: how will this affect us?

Survey on the effects of inflation on consumer buying habits

It has been in the headlines for weeks now: inflation is on the rise. Higher inflation means reduced consumer spending power. How will this affect the sale of flowers and plants? Market research firm Motivaction investigated this for us.

Over the past few years, concerns about the effects of the coronavirus pandemic on the sale of flowers and plants have proven to be unfounded. The five surveys conducted for us by Motivaction even revealed a positive effect. The fact that people were at home a lot and worked from home more often actually boosted the sale of flowers and plants. 

Now that the pandemic is no longer as severe, Motivaction’s focus is on a new development: inflation. What kinds of effect will this have on consumer spending on flowers and plants? The initial measurement was carried out in May 2022. 

Most important conclusions​ 
The survey consisted of a representative online sample in our four core countries from 11-20 May. The three most important conclusions were: 

1. Most consumers are expecting to have less cash to spend over the next six months. Consequently, they expect to be spending less on flowers and plants. Price increases for flowers and plants will also play a role in this.
2. One exception among this group of consumers are frequent buyers of flowers and plants: the Aesthetic Explorers and Status Seekers. These two target groups do not seem to be particularly impacted by inflation. They even state that they are likely to buy more flowers and plants or buy them more often over the next few months.
3. It is expected that the reduction in the first group’s spending will be approximately equal to the suggested increase in the spending of the Aesthetic Explorers and Status Seekers. More light will doubtless be shed on this in the follow-up measurement at the end of October. 

There are no notable differences between the four core countries.

A selection of survey results (May 2022)

• 55% have not yet noticed any significant inflationary effects 
• 48% expect their own financial situation to remain unchanged over the next six months
• 26% are already experiencing a deterioration in their financial situation
• 25% are assuming that their financial situation will deteriorate over the next six months (up from 22% in February)
• 15% are actually sensing an improvement (up from 11%)
• 19% are expecting an improvement over the next few months (up from 16%)

Inflation is now rising further, so a new measurement has been scheduled for the end of October.  

Further information
Keen to view the full survey report? If so, please get in touch with Monique Kemperman, Campaign Manager, by sending an e-mail to mkemperman@bloemenbureauholland.nl.

                      
_{September 2022}