Consumer- A role that we play round the clock in one way or the other. Recently a phrase that caught my attention was the abbreviation "BC" used for reporting the times before 2020. Well, it wasn't related to the ancient Christian touch but to the present trend of Pandemic crisis which had swallowed the world upside down and was therefore referred to as the phase of "Before Corona". Even though it sounded hilarious, on a serious note I am sure each one of you at some point in the last 4 to 5 months would have thought about that time of freedom which you had taken for granted. As the saying goes "You don't know what you got until it's gone" holds very true here.
From a marketing perspective, this is a phase that has enforced serious changes in the behavior and attitude of the consumer residing within a person. And from the observational studies conducted its found that these changes are expected to stay post-pandemic. The new era has brought in questions about the shopping habits which we embraced once upon a time which seems to be the discomfort zone now. Going to the shopping malls, a movie in a theater, dining in a restaurant, luxurious traveling, etc are a few of the experience aspects we as consumers enjoyed a while back. But according to the present scenario, these experience levels aren't going to normalcy even if things come back to the normal state. In short, consumers are adjusting themselves to live in the reality of COVID 19.
For a better understanding spare a few minutes to analyze the type of products around you right now and answer the following (Well I guess you are at home right now. If not better be - For yourself and the one you care about).
1. How many health care products did you find?
2. Are they comprised more of essentials than insignificant products?
3. What was the time gap you took between consecutive purchases of these items?
4. Did you order it online or did physical shopping?
5. Did you exhibit a more cash conscious approach this time when you did the purchase?
Your answers to the above questions are more or less similar to the majority in the present population. This article is a deeper dive into this changing phase of consumer behavior which is required to be known by every marketer out there for better segmentation and targeting. Based on researches conducted on various factors the changing behavior is categorized into 5 major themes. They are:
a) Health-care and care with health
b) Omnichannel with more focus on digital integration
c) Preference for Essentials
d) Loyalty or Availability
e) Indoor economy- the future
a) Health-care and care with health:
In the past 5 months, the word 'health' has seen a significant rise in the list of most googled terms. This is due to the growing concern of the individuals related to the pandemic scenario. As a result, the demand for healthcare products has seen an all-time high in the entire history. But apart from the product division, health care is also about the safety of the customers and service individuals. This is mainly related to hygienic packaging and how companies take care of the safety of their employees. Based on research conducted among the world's major economies it was found that India got the maximum weightage in both these aspects. The other factors include the consumer's desirability to buy sustainable solutions, eco-friendly products, etc.
The manner in which businesses at present take care of its stakeholders is said to have a long term impact on the future. Companies that provide products and services meeting the critical customer requirements at this point will be remembered long after the pandemic era. The same applies to the employees' level also. Employees would feel more connected to those firms which didn't just try to maximize the bottom line during this season but also took actual care of them.
b) Omnichannel with more focus on digital integration:
Integrating the different methods of sales which includes both offline and online modes are referred to as the Omni Channel approach. They focus on providing a seamless shopping experience to customers, be it ordering online or shopping from a brick and mortar shop. At present, the majority of the population prefer to purchase online (digital).
· E-Commerce:
This trend has led to the enormous growth of the e-commerce sector. Driven by concerns on the spread rate, more and more people are moving towards the digital segment all over the world. It has been observed that in countries that are partially opened, the consumer optimism level remains low due to which most are reluctant to shift their mode of purchase from online to offline. Switching over to online in the initial phase was mainly because of the non-availability of products in the nearby local shops. In India, food and grocery products got the highest share in online purchasing followed by household and entertainment. Due to this change in consumer behavior more and more companies are releasing their mobile apps to improve consumer's online experience.
· Live streaming and Subscription services:
The most popular service 'Netflix 'would do the explanation required for this part. The first quarter of 2020 alone witnessed a rise of 16 million subscribers in this OTT platform with a total of 183 million which makes Netflix the most successful OTT platform in the world. As long as the public exhibits reluctancy to public gatherings, these platforms would thrive. Also, this is found to be more convenient and feasible by the public in general. Therefore, this trend would stay for longer duration in the clock.Other contactless services like curbside pick-up, drive-through service, etc. are also adopted by the public over physical shopping.
c) Preference of essentials:
With the decrease in the disposable income of the public, consumers tend to be more money-conscious over the period. The effect of recession shaped up this attitude well over the spending thrift attitude of consumers. According to a survey conducted by a major research firm, it was found that 88% of the consumers are worried about the country's economic growth. The optimism of the country's economic revival was found to be low among all major economies. This collective fear of economy and reduction in disposable income together comprised the new purchasing pattern of consumers.
Also, it was observed that customers were more focused on the nutritional aspects of food products more these days as they can enhance the immune system of the body. The other major product category consumers would continue to focus on would be the personal care items. In the services category fitness and pet care holds the highest weightage.
Another aspect of purchasing patterns observed in the essentials category is that majority of the consumers switched to known and familiar brands thereby leading to a decline in the impulsive buying nature of the consumers. Thus the financial uncertainty of the future led the customers to prioritize value over insignificant products which tends to hold strong at least until the economy shows a significant revival in its curve.
d) Loyalty or availability:
Supply chain management is one of the most critical aspect for any brand's success in the market. The pandemic has disrupted this aspect for every brand with more impact on the top-level category which comprised of a larger network to connect between the manufacturer and the end consumer. So when consumers couldn't find the preferred brand they switched over to the available brand. The main factors that lead to this change in shopping behavior were value, availability, quality of products, and convenience. It was only in the 'food products' category brands could hold a significant share as expected. In the research conducted on the major economies, it was found that in the UK and the US almost 75% would stick to the new purchase behavior. Out of all the countries, India stood the highest with 91% of consumers intending to stick with the new pattern. Therefore, post-COVID-19 we can expect a surge in the market by local players.
e) Indoor economy- the future:
It was found that more than 70% of the consumers would prefer to stay indoors even after government regulations are eased out in the future. Post-COVID the society would adhere to only the guidelines set by the medical authorities over government policies. Only when a vaccine with the desired outcome is released the pandemic fear will come to a halt. With the employee segment already adjusted with the new norm of working, bringing a sudden change in the behavior and attitude of a person wouldn't be possible within a short span. The worst affected would be the travel and entertainment industry post COVID owing to their area of operation.
We all are thus living in flux. As a marketer to excel in today's world a deep knowledge about your target customer's way of thinking and behavior is essential. Looking at the bright side of the pandemic, this is an opportunity to start afresh with all your strategies. After all, being positive tends to win the race always. And as the saying goes "tomorrow belongs to those who prepare for it today" holds true once again.
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