- According to a recent report by Mckinsey, understanding which changes are likely to stick will help companies plan for the recovery.
- The report noted that as consumers sheltered at home, adoption of new digital services took place at a blistering pace
Brands and marketers will now need to plan on how to reach their clients as consumer behavior has changed radically in response to the Covid-19 lockdown.
According to a recent report by Mckinsey, understanding which changes are likely to stick will help companies plan for the recovery.
“The period of contagion, self-isolation, and economic uncertainty will change the way consumers behave, as these rapid shifts have important implications for any consumer-facing company,” the report stated.
As many of the longer-term changes are still being formed, companies have an opportunity, if they act now, to help shape the next normal.
The report noted that as consumers sheltered at home, adoption of new digital services took place at a blistering pace in addition to growing health and hygiene concerns, economic recession, and the related decline in consumption.
Consumer behaviors are also likely to fluctuate until the next normal and how long they stick will depend on a range of factors including satisfaction with new experiences, demographics, infrastructure, and the severity of the recession.
Therefore companies must rethink how and where they connect with consumers.
During the lockdown, the home has become a multiverse where we work, eat, play, and connect with our families and friends and even as overall consumption has declined, the portion allocated for at-home categories has climbed.
Over the months of social isolation, consumers’ net intent to take part in a variety of activities in the home has shifted, with an increase of 54 percentage points for cooking, 30 to 40 percentage points for at-home entertainment, and 22 percentage points for home improvement. Similar shifts were seen across the globe.
Another shift is in shopping where consumption will continue to decline as what people buy has changed across categories that is fewer cosmetics and more flour.
Due to this new realities, companies will need to adjust quickly to changing consumer behavior until COVID-19 is under control.