Meet the ‘client 2021’ and put together for the world after the pandemic
February 5, 2021 7 min read
This article was translated from our Spanish edition using AI technologies. Errors can occur due to this process.
The opinions expressed by the entrepreneur’s contributors are their own.
The pandemic is changing the way consumer behave in all aspects of their life. As they fled to their homes, they adopted new digital services at a dizzying pace. In addition to the growing health and hygiene concerns, the economic recession and the associated decline in consumption The change in people’s lives is breathtaking.
1. At home
During the delivery The house became a multi-universe. Various activities such as working, eating, playing and socializing with family and friends take place here. Although the general consumption decreases, the part allocated for the home categories increases. During the months of social isolation, consumer net intent to participate in a variety of activities at home changes, increasing cooking by 54%, home entertainment from 30% to 40%, and home entertainment by 22%. Handyman. The changes are similar around the world.
In general, consumption will decrease. In the next two years, private consumption is expected to decline by 17% as the global average, with a recovery to pre-crisis levels not being achieved until 2023/24. Purchases change across all categories. One syntax is simpler products and less luxury: “less cosmetics and more flour”. A strong preference for global A-brands was noted. After years of growth, out-of-home consumption almost disappeared and many stopped going to stores. In many markets, the rise of e-commerce equates to growth of several years in just a few months.
For many workers, the office is now in the living room. For those who can still work during the pandemic, the work is largely remote and digital, with the use of digital collaboration tools growing rapidly. Zoom’s daily user base grew from 10 million to 200 million in three months, and customers who pay for team communication tools such as Slack doubled. There is a high unemployment rate in the world.
4. Health and Wellness
Public health and uncertainty about how long the pandemic would last became major consumer concerns during the lockdown. 68% said they were very concerned. Here, too, the digital plays a bigger role, as the use of electronic pharmacies and electronic medicine increases. Of those consumers who had to cancel medical appointments during the lockdown, 44% accessed telemedicine options, and searches for telemedicine online have increased more than ten-fold.
5. Education and learning
Learning and learning became virtual. The introduction of new tools was encouraged. The user base for distance learning services grew by 120%. The shift of learning from outside the home to the inside blurred the lines between learning and leisure.
Consumers are spending less money on entertainment as the trend towards digital options accelerates. Game app downloads increased by more than 30%, while 45% of consumers say they use more online streaming services at home. Popular off-home activities are trying to adapt to this new reality, and Nascar and NBA are rolling out product offerings online, while cultural centers like the J. Paul Getty Museum create virtual tours and stream performances like those at the Metropolitan Opera.
7. Travel and mobility
Consumers are staying home in droves. Tourism takes place almost exclusively on land. Air traffic has fallen by 90% overall. At the same time, there is an increasing preference to avoid public transport and high-density transport hubs, which is reducing consumer demand on the go. While international travel could take years to recover to pre-crisis levels of supply and demand, domestic travel could pick up much sooner as consumers begin their summer vacation.
8. Communication and information
In general, media consumption is increasing on almost all channels. 43% of consumers watch more television, 40% use more social networks and 28% listen to more radio. The online news reader grew 39%. What doesn’t win? Print media where the ongoing decline is slowing with a 33% drop in readership.
Nothing is uniform in the new normal
While a new digital world generally sets an example, the pace at which we reach the next normal and the paths we take to get there will not be consistent. The behavior changes are likely to continue for the next six to 24 months, with frequent starts, stops, and restarts.
Whether the new behaviors will fade or continue into the next normal depends on a number of factors, among which stand out the experience of the consumer, country, consumer segment and values.
A) consumer experience. How attractive and satisfying is the consumer behavior that they crowd out determines how long they stay in the market. Even if they become permanent or not.
B) country. Although the trends are similar across countries, their strengths vary. In general, we see four country archetypes emerging:
- Temporary setback. In China, the economic impact of COVID-19 is likely to be just one more detractor, making trends like downward trading or declining discretionary spending less intense than elsewhere.
- A big impact. In developed countries like the United Kingdom and the United States, the economic impact is great. Similar to the great recession of 2008-09, we expect large cuts in discretionary consumer spending over the long term and a significant number of operations will be reduced.
- Big shock, less digital acceptance. In the developed countries of continental Europe such as France, Germany, Italy and Spain, the economic impact will be as great as in the UK and the United States, leading to a decrease in discretionary spending. In addition, countries with companies that are dependent on foreign tourism revenues, such as high fashion stores in Paris or Rome, will suffer disproportionately.
- Digital acceleration. The implications for developing markets like India and Brazil are less clear and depend largely on how well these countries weather the crisis in the months ahead. However, it is very likely that COVID-19 will accelerate the digital trend, albeit from a low base.
C) consumer segment. Consumers generally adopt new behaviors, but there are significant socio-economic status and generation differences.
D) values. Behaviors that are determined by personal values such as sustainability or the desire for personal interaction can vary in their long-term acceptance rates between countries and regions depending on the local infrastructure and other conditions.
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