I hit my broadcast studio yesterday to take on the top question of the week sent in via my Ask.A.Futurist series. Send in your question here, and if I select it, I'll take it on!
This week's question? Basically around the issue of how we might see consumer behavior change as a result of the global pandemic - what can we expect for the rest of 2021 and into 2022? Clearly, we are seeing new signs of hope amidst a massive vaccine rollout in various countries, and so things are obviously changing. How will consumers change?
I always do extensive research for my new projects, and for this one, I came across some wonderful insight from KPMG from over 75,000 consumers in 15 countries with respect to their future
- 43% are worried about their financial security in 2021;
- 36% will prioritize savings over their spending;
- 21% expect an actual net spending decline;
- 63% expect that value for money will be their key purchase driver
Clearly, the numbers tell us that we won't see a massive return to pre-Covid spending levels - there is still a lot of economic pain otu there.
What about how they will shop and spend? Don't expect a rush back to retail: 45% expect that digital channels will continue to be their main spend method going forward. E-commerce, online shopping, and curbside pickup/delivery will be with us for a long time to come. If omnichannel was an issue before - it's massive now.
In addition, brand loyalty has disappeared - 36% of consumers are now buying from more brands as a result of Covid, and 45% indicate less loyalty to the brands they 'loved' pre-Covid. Some of this spending will be local - 35% have tried a new channel, and 29% have tried local shops!
I also covered a number of other important issues in the second half of the video - give it a watch to discover some of the secrets to your consumer interactions going forward!
