Some 48% of Israelis are expected to forgo some of the purchases they planned during the November sales due to the cost of living, according to a special survey conducted by the Histadrut Consumers Authority via the Geocartography Institute among 501 respondents aged 18 and over, representing a cross-section of the Israeli population.
The survey, conducted ahead of November's major shopping events, indicates that the cost of living continues to significantly impact consumer habits in Israel. Additionally, the survey examined public attitudes toward sales, online orders from abroad, and reforms in taxation on online shopping.
Data show that 68% of respondents postponed planned purchases to execute them during the November sales. Some 48% stated that due to their financial situation, they will only be able to afford some of the products they wanted or will forgo shopping entirely. Among consumers planning to make purchases, about 63% intend to spend up to NIS 1,000. Among the most in-demand product categories during the November sales, 68% plan to buy fashion and footwear products, 48% electronics, and 43% home and design products.
Israeli consumers become more cautious amid rising cost of living
The survey also shows that Israelis are no longer easily impressed by promises of "massive discounts." Half of the respondents (50%) stated they do not trust the offered sales, and this distrust appears to affect purchasing behavior as well.
Thirty-nine percent noted that price is the primary consideration in choosing a purchasing platform, while 34% prioritize website reliability. Furthermore, 94% check shipping costs and 75% examine cancellation and return policies, reflecting a more cautious and calculated consumer who seeks to ensure the deal is truly worthwhile before pulling out a credit card.
The survey also points to less positive consumer experiences: 60% of respondents reported previously receiving a product of lower quality than expected, a 7% increase compared to last year. In addition, 62% stated that the country of origin of the product influences their purchasing decision.
Regarding changes in taxation on overseas purchases, 39% of respondents estimated that maintaining the VAT exemption up to $75 would lead them to reduce their shopping volume, while 72% believe the state should raise the exemption ceiling to $150.
Adv. Yaron Levinson, CEO of the Histadrut Consumers Authority: "The survey findings show that even during a period identified with massive sales and significant discounts, the Israeli public continues to feel the effects of the cost of living. Consumers are looking to save, but at the same time have become more cautious, calculated, and distrustful. We call on the public to compare prices before purchasing, check shipping costs and return conditions, and not rely solely on the discount rate presented in advertising. Prudent consumerism begins with preliminary checks and can save the consumer hundreds of shekels even during the sales period."