According to statistics, as the prices of goods manufactured by well-known companies like P&G and Unilever rise, French consumers are buying less personal hygiene and household goods, such as sacrificing tampons and detergent for laundry.
A new front in the months-long war between retailers, lawmakers, and manufacturers of consumer goods over food pricing may be opened up by the change in consumer buying habits.
In the fiscal year that concluded on September 17, NielsenIQ's data revealed a fall in general sales volumes for toilet paper, dishwashing liquid, tampons, and shower gel. Each of those categories' supermarket costs have increased significantly this month compared to the same time last year.
Where there are satisfactory private label substitutes, there has been a significant shift to private labels, according to Anton Delbarre, head economist of retail trade group Eurocommerce.
And you'll see that some people genuinely do cut back on their eating, showering, housecleaning, or using a bit less product in their dishwasher or washing machine.
The administration of President Emmanuel Macron is expected to combat food inflation in the budget it submits on Wednesday by introducing legislation to move up annual talks between producers and retailers. Price reductions would thus presumably start on January 15 instead of March 1, as is customary.
Retailers and politicians have criticized food producers like Nestle and Pepsico for not "co-operating" in price negotiations and for shrinking product pack sizes.
The second-largest grocery chain in France, Carrefour, which has the ability to set prices, last week labeled products that are becoming smaller without a price increase as "shrinkflation."
In contrast to private-label products sold by shops, major brands, including Ariel laundry detergent and Dove soaps, have long ruled the market.
However, the NielsenIQ data reveals that while sales of big-name brands are down, private-label personal product sales are slowly increasing. For instance, sales of shower gel fell 6% generally. Big brands declined by 10%, while private label products increased by 14% .
Similar to this, volumes of laundry detergent increased by 28% for private label companies despite being down roughly 2% overall and 10% for big brands.
In the year leading up to September 17, individuals bought more of each kind of goods made by stores' private label brands than they did of the large brand for things like shower gel, dishwashing liquid, laundry detergent, tampons, and toilet paper.
Consumer goods corporations have mainly been silent, leaving trade associations to advocate on behalf of them, while the government and grocers have been outspoken about their grievances in the public eye and at hearings with lawmakers.
According to Bruno Monteyne, an analyst of Bernstein, the sluggish French economy is to blame for the low volumes of consumer goods.
In August, Alexandre Bompard, CEO of Carrefour, issued a warning that consumers had been compelled to drastically reduce their spending on necessities due to high costs.
Bompard, who has for months lowered prices to lure customers away from rivals, claimed at the time that Carrefour was able to offer washing powder at a discount of 60%, but wouldn't be able to continue that after a cap on the incentives retailers may provide becomes law.
He said that the modification would reduce Carrefour's ability to negotiate with significant suppliers, including Procter & Gamble, Henkel, and Unilever.
Delbarre from Eurocommerce claimed that even once the cost-of-living pinch eases, part of the change in consumer behavior is likely to endure.
People are truly rationing, partly because their purchasing power has fallen and also partly because their incomes always fall short of inflation. While this effect ought to diminish after wages catch up with inflation, some of it will undoubtedly still remain since people develop new habits.