Shadow Alcohol Market: Defining the Main Types and Motives of Consumers

Abstract

Over the recent decade there has been a decline in alcohol consumption and a switch from strong alcoholic drinks to lighter ones. However, alcohol consumption is still an integral part of the entertainment culture and a popular stress-relieving practice. The shadow alcohol market has shrunk and considerably changed since the adoption of new regulations, however it has not disappeared. One of the major research questions is why people still buy alcohol at illegal sales points.

The article presents the results of a study conducted jointly by the ‘Platform’ Center for Social Design and the SKOLKOVO Consumer Market Development Center. Based on a series of interviews with the consumers of the shadow alcohol market the article describes consumer types, motivation, behavior models, as well as situations where a switch to this market takes place. As a rule, those who buy alcohol in the shadow market are generally people with low income, those who do no trust a licensed seller or manufacturer, or those who try to bypass the ban on late-night alcohol sales. Introduction of restrictions on alcoholic beverage retail sales redirects the consumers to the shadow market sector, if they try to economize or if their friends introduced them to the shadow market.  Consumers face specific risks in the shadow market as it deals with strong alcoholic drinks, and the only way to check the quality is by word of mouth.