Value and innovation are essential for brands in the post-pandemic recession
- June 17,2020 By IndianTelevision Team
MUMBAI: Persistent safety concerns, financial pressures and sticky new behaviours mean consumers will not return to pre-pandemic behaviour any time soon. Marketers will need to pivot to finding growth in recession, delivering increasing value in the short-term to address growing economic concerns while innovating their way to sustained relevancy as behaviours and priorities change long-term. These are the findings from the fifth wave of Kantar’s COVID-19 Barometer, global study tracking people’s attitudes, behaviours and expectations across more than 50 markets.
Post-pandemic recovery delayed
Only one-third of people (37 per cent) expect to return to non-essential consumer behaviour before two to three months. Even as many countries relax lockdown laws and commercial businesses reopen, across the world, 66 per cent of people say they will continue to avoid busy places, meaning a drag on physical retail environments.
Beyond mandated hygiene and social distancing measures, 50 per cent of people want regular testing for all and 43per cent want mandatory facemasks, led by demand in Asia, but more reluctance in western markets.
Nearly everyone is experiencing increased anxiety over money. 56 per cent of households across the world have now experienced a loss of income due to Covid2019. In India, the impact is even more acute, with 74 per cent of households have experienced a loss of income due to Covid2019. This rises to 68 per cent of the millennial generation and 65 per cent of GenZ. A further 19 per cent expect an impact on their income in the future.
Brands and retailers need to prove their value
As the financial impact of the crisis becomes increasingly apparent, across the world consumers consistently speak of a sense of pride in finding value, making smart decisions, and quietly enabling their own long-term success. 53 per cent of consumers are paying more attention to products on sale (vs 36 per cent in wave1). Offering discounts and promotions is now the third-highest expectation of brands, (vs 5th in wave 2). 69 per cent of consumers say a shopping list is more important now globally as well as in India.
Beyond pricing strategies, consumers expect brands to keep advertising and acknowledge the crisis; three in four (74 per cent) are happy with the volume of advertising, and only 14 per cent want to see pre-pandemic ‘normal’ advertising. Two-thirds of consumers are looking for help and advice - for themselves (64 per cent) and their communities (65 per cent) in the adverts they see and in actual brand behaviour. In India too, more than half of consumers would like to see a lot more of advertising which shows what brands are doing to help the community (57 per cent) and the people themselves (54 per cent).
Grocery stores are recognised as delivering value in the short term. 40 per cent of consumers globally and 60 per cent in India perceive their grocery store experience to be more positive while 69 per cent perceive employees to be friendly and helpful and grocery stores to be acting on their promises; both metrics significantly outperforming CX benchmarks.
Ecommerce usage continues to soar. 40 per cent (vs 33 per cent in wave 3) of consumers now say they have increased or significantly increased their online purchasing, rising to 48 per cent for households with children and millennial households. India too shows a positive trend for Ecommerce usage (45 per cent vs 40 per cent in Wave 3). Low pricing and promotions rank as the biggest reasons.
Innovate to align with the new rhythms of life
People have started to like their lockdown habits. More than half believe they will maintain lockdown behaviours post-pandemic. In India too, people are likely to maintain behaviours adopted during the pandemic. Increased hygiene, healthier eating, spending time with the family and personal development are most likely to be maintained. More than half the world now claim to be trying to exercise more.
These changes all lead to different needs and spending patterns, and with more than half the world also feeling financial pressure, brands need to ensure their products make the cut in being considered vital in the new rhythms of life. This is amplified by the increase in willingness to switch. 45 per cent (rising to 50 per cent+ of households with kids,) of consumers say they are prepared to keep using products and online stores they found while in lockdown.
Kantar chief client officer South Asia insights division- Soumya Mohanty said, “Indians are still in the phase between a lockdown and unlock. Some habits are starting to stick – eating healthy, hygiene while new ones around social distancing are emerging. The way we shop and interact will change but in an emerging, aspirational market the meaning of sustainability and responsible consumption differs. Brands will need to move from emotional succour and social solidarity to fundamentals of value, functionality, innovative delivery and simple mental availability. Simplicity could well be the new mantra as we navigate an uncertain world.”
Kantar chief innovation officer - Rosie Hawkins, observed, “Adapting to life post-pandemic, we’ve started to appreciate, and want to maintain our newly formed healthy behaviours, our more considered and purposeful personal connections and our online shopping habits. Brands and companies first and foremost need to ensure that their goods and services are safe to use and that precautions have been taken to guarantee this. As lock down restrictions lift, consumers' lives will continue to change and so brands will need to reassert their relevance in these new environments.”