The report also reveals how 43% consumers are expecting decrease in overall spend in the next six months
With the onslaught of coronavirus pandemic, the existing digital trends have gained momentum as 51% consumers saw an increase in payment via digital wallets in the post-covid period, according to Facebook India-Boston Consulting Group (BCG) Report. Titled ‘Turn The Tide’ the report also highlights that 50% of all consumers expect to increase e-commerce spend in next one month. Similarly, spending on the health and hygiene sector will see more than 40% increase over six months.
‘Turn The Tide’ report delves into key consumer-shifts based on three societal-norms that have emerged as a result of the pandemic – social distancing, increasing focus on health and hygiene, and increasing income uncertainty. Within each of these shifts, the report finds that there are three kinds of behavior change movements that are being observed – reversal of past trends, acceleration of existing trends, and formation of new habits. “We are experiencing unprecedented shifts in consumer attitudes and many of these shifts will last for a longer time and become more defining traits. There are certain existing trends which will get further accelerated. At the same time, we are going to see a reversal of certain trends while new habits starters solidify into emerging trends,” Nimisha Jain, Managing Director and Partner, Boston Consulting Group, explained.
43% consumers are expecting decrease in overall spend in the next six months as consumers become smart shoppers and buy only necessary products, the report reveals. Consumers are gravitating towards brands they can trust with 63% consumers paying more attention to the origin of the product. Meanwhile, 65% consumers believe that a brand’s response to the crisis will have an impact on future purchase likelihood.
According to the report, brands need to build social connect and engage with consumers in their context. Moreover, with the country being divided into different zones and distinct restrictions, it’s time for brands to focus on hyper-localisation and connect with consumers where they are. This is also the optimum time for brands to take the digital route for product launches and product demos and for those who don’t have an online presence to build one. “Brands need to focus on solutions that are relevant for the new normal such as hyper-localisation, creating virtual experiences and demographic targeting. For instance, on Facebook advertising, consumers can click to WhatsApp and start a conversation with the brand straightaway, thereby increasing the brand’s ability to understand its consumers,“ Sandeep Bhushan, director and head, global marketing solutions, Facebook India said.