London, 11th June 2020 – 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, the largest global study tracking people’s attitudes, behaviours and expectations across more than 50 markets.
Post-pandemic recovery delayed
Only one third of people (37%) expect to return to non-essential consumer behaviour before 2-3 months. Even as many countries relax lockdown laws and commercial businesses reopen, across the world 66% 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% of people want regular testing for all and 43% want mandatory facemasks, led by demand in Asia, but more reluctance in western markets. Nearly everyone is experiencing increased anxiety over money. 56% of households across the world have now experienced a loss of income due to COVID-19. This rises to 68% of the Millennial generation and 65% of GenZ. A further 19% expect an impact on their income in the future.
In the short-term 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% of consumers are paying more attention to products on sale (vs 36% in wave1). Offering discounts and promotions is now the third highest expectation of brands, (vs 5th in wave 2). 69% of consumers say a shopping list is more important now. Beyond pricing strategies, consumers expect brands to keep advertising and acknowledge the crisis; three in four (74%) are happy with the volume of advertising, and only 14% want to see pre-pandemic ‘normal’ advertising. Two thirds of consumers are looking for help and advice - for themselves (64%) and their communities (65%) in the adverts they see and in actual brand behaviour.
Grocery stores are recognised as delivering value in the short term. 40% of consumers perceive their grocery store experience to be more positive while 69% 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% (vs 33% in wave 3) of consumers now say they have increased or significantly increased their online purchasing, rising to 48% for households with children and millennial households. 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 (52%, 57% Millennial, 55% GenZ believe they will maintain lockdown behaviours post-pandemic. Increased hygiene, healthier eating, spending time with the family and personal development are most likely to be maintained. More than half the world (51%) 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% (rising to 50%+ of households with kids) of consumers say they are prepared to keep using products and online stores they found while in lockdown.
Commenting on the findings Rosie Hawkins, Chief Innovation Officer, Kantar 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.”
More analysis of wave 5 data can be found at kantar.com/inspiration. To request more information about COVID-19 Barometer, please visit: www.kantar.com/Campaigns/Covid-19-Barometer
About Kantar: Kantar is the world’s leading evidence-based insights and consulting company. We have a complete, unique and rounded understanding of how people think, feel and act; globally and locally in over 90 markets. By combining the deep expertise of our people, our data resources and benchmarks, our innovative analytics and technology, we help our clients understand people and inspire growth.
About COVID-19 Barometer: Kantar’s COVID-19 Barometer is the world’s most comprehensive study on how COVID-19 is influencing consumers’ behaviours, attitudes and expectations The full dataset is available on a subscription basis, find out more at www.kantar.com/Campaigns/Covid-19-Barometer.
About the data: These insights have been collected across 5 research waves. Kantar has interviewed over 100,000 consumers in in over 50 markets. We conducted 500+ interviews per country, mostly online, otherwise by telephone.
More detailed, wave 5 findings can be found in the attached summary presentation deck.