Psychoanalysis or Retail Therapy: (Not) Spending in the Crisis

By Galina Khatiashvili, Intern, The PBN Company, Moscow

One of my friends jokes that during the crisis she is “investing” her money in psychoanalysis. Whether this is because of the greater stress or because of the plummeting price of therapy, I’m not sure. But the financial crisis is prompting all of my friends to make different choices and sacrifices.

My generation has a complex about money. The Soviet legacy means we are hardwired to scrimp and save, but we spent our teenage years during the profligate consumer boom. Now, during the crisis, the unconscious desire to economize has come to the fore.

We are shopping less, and when we do shop we are more fastidious. 63% of Russians have cut their spending, according to recent survey by Synovate, as reported in Vedomosti. 46% of Russian consumers are now actively shopping around for the best price before they buy, while only 3% of Russians admit to impulse buying. Only 1% now say that they often purchase luxury goods, down from 10% in August 2008.

There is, however, a definite sense of camaraderie in the crisis. Since January glossy magazines have been bursting with articles on cheap entertainment. A popular Russia women’s blog highlights free exhibitions and opportunities for local skiing and skating. It seems that our sense of fun remains - Monopoly and Twister are making a come back.

But, while we are economizing, there are some things that we don’t feel guilty about. My friends and I continue to spend on the Internet and mobile communication (although we may cut back on the tariff), fitness clubs and beauty products, and even private healthcare. We are not in denial about the seriousness of the situation, but for the time being, these are all staples that we are less than eager to relinquish.

So while we may dream of the return to carefree spending, at present we are content to repress those desires – and instead take pleasure in economizing.

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2. Spreading Cheer and Spending Cash
3. [The Crisis: Make Or Break Time for Key Relationships] Part IV: Business and the Media
4. Continuing to Break New Ground … A Solid Foundation For Kazakh Retail?
5. How About Planting Potatoes This Weekend?