E-commerce is likely to see more than usual spends from consumers even though overall household incomes are likely to drop, according to a new report by the Boston Consulting Group and Facebook.
Recommended ArticlesView All
'Elephant in the room' — Finance Minister red-flags gold smuggling
IST2 Min(s) Read
Indian consumers are now paying more attention to the origin of a product and are also looking at how brands have responded to the crisis. The focus on the product origin is higher in India than in other countries such as the US, UK, South Korea, etc., as per a new report by Facebook and Boston Consulting Group.
The report also notes that e-commerce is likely to see more than usual spends from consumers even though overall household incomes are likely to drop as 54 percent of consumers expect household income to reduce in the next six months.
When it comes to e-commerce, one in two consumers will up their spending in the next month with electronics, fashion, personal care, and vitamins and supplements likely to see higher spends.
The report, titled ‘Turn The Tide’ highlights 11 key changes in consumer behaviour, which brands and companies can focus on to adapt to the new normal.
11 TRENDS OF CONSUMER BEHAVIOUR:
1) Bringing the Outside Inside - 79 percent consumers are not going out of the house, except for work. When it comes to watching movies in theatres - 31 percent said they will go within a few weeks; while 38 percent said they will take a few months.
For eating out - 33 percent said they will go out within a few weeks; while 39 percent said they will eat out within a few months.
2) Trust in Brand above all else - 63 percent of consumers are now paying more attention to the origin of product. This is higher in India than in other countries such as the US, UK, South Korea, and others, the report highlighted.
The report highlights an opportunity for a ‘Made in India’ play for brands as consumers may care more about local sourcing and origins.
3) Trading Down and Bargain Hunting - 43 percent of consumers are expecting a decrease in overall spend in the next 6 months and 35 percent are expecting discounts across categories. 70 percent said they will buy cheaper brands or variants.
4) Shopping for Utility - With 54 percent of consumers expecting lower income in the next six months, purchase triggers are expected to become more functional.
5) Embracing Digital Services and Experiences - 51 percent of consumers saw an increase in payments via digital wallets.
Nearly 3 billion consumers globally are actively using Facebook, Whatsapp, Instagram, or Messenger each month.
Consumers are also embracing digital in historically offline categories like education and health and fitness. The report highlights 32 crore students have been impacted with schools and colleges remaining shut, while there are 90 million health-conscious individuals, who have not been able to access gyms.
The report highlights how Unacademy has seen a 101 percent increase in time spent on its platform, while Cure.fit has seen an increase of 120 percent.
6) Accelerated Adoption of E-commerce and O2O - 50 percent of all consumers expect to increase e-commerce spend in the next one month; Categories such as electronics, fashion, and personal care are likely to see more e-commerce spend by consumers than usual, the report highlights.
The surge in preference for an online channel is sharper in India than in other countries.
7) Strive for Health and Fitness - 40 percent of consumers may increase spending on health and wellness; and there has already been a 120 percent spike in online searches on health and immunity.
The report cites this as an opportunity for Health and Wellness players to emerge as category leaders and engage and attract more consumers.
8) Rise of the Smart Shopper - Consumers are making informed purchase decisions, with high salience of digital research; 40 percent of consumers conduct online research before purchase, while 85 percent of consumers checked over 2 data points during purchase.
9) Remote Way of Living - There has been a 60 percent increase in Instagram Live Views in a week. Globally 700 MN daily actives are using Whatsapp and Messenger for calling, twice more than before COVID-19. Brands are leveraging the need for virtual connection in their messaging and the need of consumers to socialise virtually.
10) DIY - Do It Yourself - There has been a spike in new hobbies and habits, including a spike in ‘How to Make’ and ‘How To Cook’ searches online.
11) Superior hygiene and clean living - a new norm - 91 percent of Indian households washing hands more often, 83 percent of consumers are buying masks and disinfectants for storage at home, while products like hand sanitizers and hand wash are seeing over 2 lakh new users every week.
First Published: IST