Facebook has recently published a report with BCG (Boston Consulting Group) on how COVID 19 pandemic has changed consumer behavior in a big way as 1.2 bn people sitting at home and not able to step out have embraced a new path to purchase. The way consumers are living their lives and adapting new lifestyles has given birth to a phenomenon called “new normal” and this is going to continue even after this pandemic ends.
There are brands that are growing even in the face of adversity by pivoting their business model towards the need for consumers.
So, the question is how brands can unlock this “new normal” and grow their brands with changing consumer behavior, need, and the path they are taking to purchase.
Here is a quick summary of the 30+ page report just to save your time and giving full insights:
- This pandemic has created a never before focus on “Health & Safety”. The report says that 49% of consumers intend to buy more vitamins, herbs, and supplements in the coming days.
- Consumer priorities are being re-calibrated, certain behavior will stick long term. 50% of the product categories will see less spends in the next 6 months. There is a 12.5% increase in mobile screen time.
- There are categories that are growing such as daily essentials, health, indoor entertainment (OTT) and there are categories that are shrinking such as travel, auto, OOH dining, and entertainment. Consumers have different spending sentiments (positive, neutral, and negative) for each of these categories brands which are hit hard need to identify opportunities to survive and brands from growing categories need to take strategic decisions to win and gain market share.
- More than 50% of the consumers across the SEC A, SEC B, and age groups are expecting a decrease in income and spends.
- The research highlights 3 fundamental themes (social distancing, health & hygiene, and income certainty) impacting the consumer behavior and there are 11 trends of consumer behavior that are emerging out of these themes:
- 79% of the consumer will avoid going out except work.
- 63% of the consumers are paying more attention to the origin of the product.
- 43% of consumers are expecting a decrease in the overall spending in the next 6 months.
- Purchase triggers will be more functional and utility led.
- Increase in payments via wallets and UPIs
- Consumers will increase spends on e-com purchase
- Increased spend on health & wellness products
- Purchase decision will be more informed via digital research
- Increase in Instagram Live.
- Spike in new habits and hobbies
- 90% of Indians are washing hands more often