The report delves into key consumer shifts based on social distancing, increasing focus on health and hygiene, and increasing income uncertainty.
Facebook India, in association with Boston Consulting Group (BCG), a leading global management consulting firm, has released a report titled ‘Turn the Tide’. It focuses on how COVID-19 has dramatically changed consumer behaviour and altered the path-to-purchase. The report also shares actionable guidance for brands to build for the new consumer journeys in times of COVID-19, and beyond.
The report delves into key consumer shifts based on three societal truths that have emerged as a result of the pandemic - social distancing, increasing focus on health and hygiene, and increasing income uncertainty. The report finds that three kinds of behaviour change movements are being observed - reversal of past trends, acceleration of existing trends, and formation of new habits.
Speaking about the report, Sandeep Bhushan, director and head, global marketing solutions, Facebook India, said, “The ‘Turn the Tide’ report outlines the opportunities that businesses need to embrace in the context of new consumer journeys and category needs. In response to consumers embracing the digital medium, brands need to focus on solutions that are relevant for the new normal, such as hyper-localisation, creating virtual experiences, relooking at the media mix to build efficiency, or building messaging around new habits, such as DIY, and the increased focus on health and hygiene.”
Nimisha Jain, managing director and partner, BCG, states that only one out six companies would come out stronger once this crisis is over. She says that the players who are effectively capable of reinventing their value propositions, go-to-market plans and business models would be the ones to set themselves apart from the pack.
“We are experiencing unprecedented shifts in consumer attitudes and behaviours. Over 80 per cent of consumers will continue to practice social distancing and are bringing the outside inside, over 40 per cent are dialling up on health and wellness spends, e-commerce adoption has already advanced by 2-3 years, to name a few. These aren’t just temporary surges, and many will last longer and become more defining traits,” says Jain.
The report especially calls out the massive acceleration in digital led by social media, the emergence of micro-market opportunities, an increase in value consciousness leading to more utility-led shopping, consumers embracing digital, even in historically offline categories such as education, health, and fitness, the increase in spending on e-commerce in the coming months, even for traditionally offline categories, a definite increase in spends on health, hygiene and wellness, and a rise in do-it-yourself (DIY) trends.
It highlights that 63 per cent of consumers are paying more attention to the origin of the product.
Some other key points highlighted in the report are:
The consumer journey has altered; brands need to urgently identify opportunities to build for new consumer journeys.
COVID-19 has fuelled the digital medium in an unprecedented manner. Some of these consumer trends are here to stay.
Brands are already leveraging social media platforms to build for new consumer journeys.
Read the full report here: