More than 4,000 respondents were surveyed to understand the potential impact of the Coronavirus pandemic from the consumer sentiment perspective.
In the face of unprecedented economic disruption caused by the COVID-19 pandemic, non-metro markets are likely to recover faster than metro markets, an EY survey finds.
The report ‘Will non-metro markets propel India's recovery’ reveals that a higher percentage of respondents from non-metro markets expect to spend more than before on several categories, compared to metro markets. This indicates that when the lockdown ends, green shoots of recovery would probably sprout faster from the non-metro markets.
The survey covered a varied demographic mix of more than 4,000 respondents (2,000 each from metro and non-metro markets) to understand the potential impact of the pandemic from the consumer sentiment perspective. It covered key aspects linked to the current and expected attitudes, behaviours and spending trends of consumers as they adapt to the new reality.
The survey results reveal that the pandemic, and the ensuing social distancing measures put in place, have led to fundamental changes in how Indians are consuming media, necessities, luxury products, education and travel.
Some key insights from the survey include:
Health, hygiene and online services will continue to grow
While COVID-19 has impacted overall consumption, categories like heath products, household products, hygiene products, vitamins and supplements, and online services (gaming, home entertainment, online education, online banking) are expected to benefit.
Non-metro market recovery is expected to be faster than that of metros
Categories like consumer goods, travel, entertainment, automobiles and white goods are all expected to see faster recovery (and increased demand) from non-metro markets, post the lockdowns.
Increase in digital adoption
Digital trials increased significantly during the lockdown period. However adoption was higher for metros vis-à-vis non-metros. Some of the obstacles stated by non-metro respondents included lack of technological knowledge, absence of smartphones, and fewer language interfaces.
Newspapers remain the most trusted medium
The impact of the Coronavirus has unfolded at a dynamic rate, causing a sense of urgency to absorb information, increasing the consumption of news coverage at unprecedented levels. Newspapers continue to remain the most trusted news source. Forty-two per cent of the respondents in non-metro markets spend more than 20 minutes reading a newspaper, compared to 36 per cent in metros.
Read full survey report here: