McKinsey’s Study on Indian Consumer sentiment
Mckinsey’s study on “Indian consumer sentiment during the coronavirus crisis” says Indian consumers have become more optimistic about the economy gradually each week. Indians are primarily concerned with safety, public health, and care for their family members.
Although Indian consumers are confident of the economic rebound, they are cautious in their spending and are using savings judiciously. The report also mentions of increase in the use of digital platforms for the online purchases of the goods.
The survey result expects the decrease of spending for the coming few weeks on products such as snacks, tobacco, food takeout, jewellery, adventures, and other outdoor entertainment activities, whereas increase spending on groceries, household supplies, personal-care products, and home entertainment activities. People are spending more on time-consuming indoor interests such as news, movies, or shows and expected to continue even for the next few weeks.
Nielsen study on phases of COVID situation and consumer behavior
Nielsen, a global marketing research firm, has released data showing a whooping increase in hand sanitizer sales in India by 290% in April up from 27% in the first week of March. They have categorized the whole Corona-virus period into six phases.
- Proactive health-minded buying
- Reactive Health management
- Pantry Preparation
- Quarantined living preparation
- Restricted Living
- Living a new normal
The first phase is where people’s interest rises in the health products, followed by prioritization of the product to the virus contamination in the second phase and stocking up of the shelf-stable foods in the third.
Currently, India is in the fourth phase, where there is an increase in online purchases due to government restrictions against large gatherings. The next stage is of mass community transfer, where online fulfilment becomes restricted, and stocks become limited.
The last phase will be of return to normalcy, but still, people will be renewed to be cautious about health, and a permanent change in the supply chain and e-commerce practices happens.
Relation between Consumers and Brick and Mortar stores
There is a trust created between the consumers and the mom and pop stores nearby during the Lockdown, and it is unlikely for the contribution of the local Kirana stores to demise less than 85% of overall sales even after COVID ends.
Packaging changes during COVID
We have seen the purchases of large packets of groceries in recent days. However, purchase size is likely to come back to medium and small packages once the supply chain comes back on the track, and people stop hoardings.
Post COVID consumer sentiments on Cab Aggregators business
Cab aggregators might get back on the market soon post COVID, but they will have to take additional care of hygiene and use of gloves and masks for the drivers. People will be skeptical of sharing cabs with unknown users of cabs. Ola or Uber might have to adjust their supply of cabs accordingly.
Post COVID effect on Dining and entertainment industry
The dining and entertainment industry has faced a complete shutdown in the last month due to the current situation. Due to a month of isolation, consumers are unlikely to bounce back to outdoors soon. However, humans like to socialize, meet people, and thrives on outdoor activities. They will make a comeback to normalcy but with minor hygiene changes such as frequent use of sanitizers. It might take 3-6 months for the dining and entertainment industry to flourish again.
Companies like Disney have started partnering to overcome the loss due to COVID. Recently, Disney collaborated with Hotstar to provide the World’s best entertainment to every customer by streaming services. Disney has suffered the cancellation of several productions and closure of theme parks. There can be a lower attendance in the theme parks, even post COVID.
What should we focus on post COVID phase?
China, who has already passed all the phases of COVID and arrived at the final stage of returning to a healthy life, consumers there have been seen being positive towards regaining the economy, and the same we can expect in India. The focus now should shift to omnichannel marketing, development of brick and motor stores, improvement of the supply chain such that each product has at least two suppliers, and an increase of digitalization.