One in two consumers says their spending habits have changed permanently due to the pandemic and this picture is really similar among countries. An international survey carried out by AlixPartners (7,000 consumers in 9 countries) and a study by Kantar* (which involved 11,500 people in 21 countries) offer us an important picture of the situation globally.
Vaccination campaigns as a push towards consumption
First of all, general anxiety remains high, with 70% agreeing that the coronavirus situation still worries “enormously”, compared to 79% in April 2020. A figure which, however, is directly influenced by the progress of the vaccination campaigns: In countries where the vaccination rate is above 30% and the number of new cases is low, stable, or declining, the level of concern has indeed dropped from 76% to 57%. Conversely, in countries where the number of cases is not declining, the level of anxiety has increased from 75% to 80% today. In this context, the average acceptance of the rules remains mostly good and there is a generalized increase in comfort levels for the return to consumer/social behaviors, but the levels still remain low to speak of an effective recovery and a favorable push.
In addition, a significant level of hesitation about vaccines remains, with 17% of respondents reporting that they probably/definitely would not undergo vaccination. The hesitation rate is higher in the 18-24 age group, compared to the 8% hesitation for the over 65 age group. In support is the “concern for safety” (41%), confirming how on the information front a different approach to medical-scientific news is required, with more explanatory, responsible, coherent tones at the category level and less propaganda and sensationalistic (the click-catcher headline which, however, is misleading with respect to the content).
Financial status and expenses
If the collective hope, on the business side, is of a strong boost in consumption, in addition to the health and safety issue, there is still the financial status of families. Notably, 54% of people have suffered an impact on their income, while 18% still expect their income to decline in the future due to the pandemic. Young people (18-34 years old) have experienced a greater impact, with 62% having already experienced a loss of income. Among European countries, Italians are the most worried about their financial situation (14% against 9% in Germany, 8% in France, and 7% in the United Kingdom). The AlixPartners survey also shows that consumers in Italy continued to cut spending during the pandemic with a stable trend between summer 2020 and winter 2021.
The expenses most impacted by the pandemic concern travel and tourism (about -80% compared to the pre-Covid-19 period), entertainment outside of home (about -75%), and physical exercise equipment (about -62%). In the less affected product categories, we find cosmetics and personal care, while food (about +15%) and household products (+20%) have even gained ground. The categories that recorded the greatest difference in spending reduction between summer and winter are consumer electronics and home entertainment – consumer electronics went from -39% in the summer to -24% during winter, and home entertainment went from -19% to -5%.
Future scenarios in consumer behavior
One in two consumers says that their spending habits have changed permanently due to the pandemic. The physical point of sale, in fact, maintains its plus of ritual and sensorial experience which will nevertheless have one of its main challenges in restoring a feeling of security. In particular, 27% of respondents will increase in-store purchases after the end of the pandemic. Regarding eating habits, 38% of consumers plan to increase their presence in restaurants again.
Always keeping the focus on international trends, consumers seem to be affected from the point of view of environmental awareness since the beginning of the pandemic: 54% of respondents in Italy declared that they have increased concern for the environment with a consequent impact on purchasing decisions, while in Germany the percentage drops to 33%, and in France to 38%. The concept of “localism” also continues to be important, with 52% of all respondents paying more attention to the origin of products than in the pre-pandemic; 68% prefer supermarkets close to home, while 64% think local shops are important to the community. An orientation that does not exclude, however, a growing attention to convenience and savings: 70% of respondents overall pay more attention to prices compared to 64% in April 2020, while 58% (+ 10%) pay more attention to products on sale.
Brand communication and sales strategies must, therefore, take into account these consolidated trends, among which it also emerges that “spending time with our families” remains a permanently acquired priority. A positive (beautiful) consequence of the pandemic is, in fact, the renewed attention to affections, which the past years taught us to take less for granted.
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*Data from the Kantar study was divulged in a private session.
Cover image source: cottonbro